Required information [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 Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 0 24,000 21,000 3,000 $ 50 80 20 10 $ 160 $ 840,000 315,000 $ 1,155,000
Required information [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 Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 0 24,000 21,000 3,000 $ 50 80 20 10 $ 160 $ 840,000 315,000 $ 1,155,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...
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Required information
[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
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Total variable cost per unit
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
Total fixed costs
0
24,000
21,000
3,000
$ 50
80
20
10
$ 160
$ 840,000
315,000
$ 1,155,000
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffca5de9a-83a9-4b31-bbf2-0ed05744b8c9%2F31e9922b-059b-42f2-9eb8-8f1b7df2f760%2F9n1vlbl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5
Required information
[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
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Total variable cost per unit
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
Total fixed costs
0
24,000
21,000
3,000
$ 50
80
20
10
$ 160
$ 840,000
315,000
$ 1,155,000
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?
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