90.2K
Verified Solution
Link Copied!
SB Exercise 6-14 through Exercise 6-15 (Algo)
Skip to question
[The following information applies to the questions displayed below.]
Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last years operations follow:
| Units in beginning inventory | 0 |
| Units produced | 26,400 |
| Units sold | 22,200 |
| Units in ending inventory | 4,200 |
| Variable costs per unit: | |
| Direct materials | $ 50 |
| Direct labor | 80 |
| Variable manufacturing overhead | 20 |
| Variable selling and administrative | 10 |
| Total variable cost per unit | $ 160 |
| Fixed costs: | |
| Fixed manufacturing overhead | $ 924,000 |
| Fixed selling and administrative | 333,000 |
| Total fixed costs | $ 1,257,000 |
Assume the company uses absorption costing. Prepare an income statement for last year.
| | |
| | | Chuck Wagon Grills, Incorporated | | Absorption Costing Income Statement | | | | | | | | | 0 | | | | | Net operating income(loss) | $0 | |
Answer & Explanation
Solved by verified expert
