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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?

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?

Accounting
Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter21: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement Sales $ 1,740,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses 261,000 1,479,000 Contribution margin Fixed expenses: (170,000) Fixed manufacturing overhead (160,000) Fixed selling and administrative expenses (330,000) $ 1,149,000 Net operating income < Required 1 Required 3 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement Sales $ 1,740,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses 261,000 1,479,000 Contribution margin Fixed expenses: (170,000) Fixed manufacturing overhead (160,000) Fixed selling and administrative expenses (330,000) $ 1,149,000 Net operating income < Required 1 Required 3 >
Exercise 7-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO7-1, LO7-2] Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor 9,500 8,700 800 2$ Variable manufacturing overhead Variable selling and administrative 80 20 10 30 Total variable cost per unit 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs $ 170,000 160,000 $ 330,000 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?
Transcribed Image Text:Exercise 7-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO7-1, LO7-2] Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor 9,500 8,700 800 2$ Variable manufacturing overhead Variable selling and administrative 80 20 10 30 Total variable cost per unit 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs $ 170,000 160,000 $ 330,000 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?
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