SB Exercise 6-14 through Exercise 6-15 (Algo)
[The following information applies to the questions displayed below.]
Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last year's operations follow:
Units in beginning inventory 0
Units produced 28,000
Units sold 23,000
Units in ending inventory 5,000
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 $ 980,000
Fixed selling and administrative 345,000
Total fixed costs $ 1,325,000
Exercise 6-14 (Algo) Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis
[LO6-1, LO6-2]
Required:
1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume the company uses variable costing. Prepare a contribution format income statement for last year.
3. How many barbecue grills must be sold to break even?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Assume the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost