Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory Units produced Units sold 20,000 19,000 1,000 Units in ending inventory Variable costs per unit: Direct materials $ 50 Direct labor 80 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 20 10 $ 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 700,000 285,000 $ 985,000 Total fixed costs Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold?
Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory Units produced Units sold 20,000 19,000 1,000 Units in ending inventory Variable costs per unit: Direct materials $ 50 Direct labor 80 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 20 10 $ 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 700,000 285,000 $ 985,000 Total fixed costs Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
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