Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Inc., 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 Units in ending inventory Variable costs per unit: Direct materials 26,000 22,000 4,000 50 Direct labor 80 Variable manufacturing overhead Variable selling and administrative 20 10 Total variable cost per unit 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 910,e00 330, e00 $1,240,000 Total fixed costs Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses absorption costing. Prepare an income statement for last year.
Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Inc., 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 Units in ending inventory Variable costs per unit: Direct materials 26,000 22,000 4,000 50 Direct labor 80 Variable manufacturing overhead Variable selling and administrative 20 10 Total variable cost per unit 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 910,e00 330, e00 $1,240,000 Total fixed costs Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses absorption costing. Prepare an income statement for last year.
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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Please stick to the format that was given especially for Req 2
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Required information
[The following information applies to the questions displayed below.]
Chuck Wagon Grills, Inc., 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
26,000
22,000
4,000
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
$4
50
80
Variable manufacturing overhead
Variable selling and administrative
20
10
Total variable cost per unit
2$
160
Fixed costs:
$ 910,000
Fixed manufacturing overhead
Fixed selling and administrative
330,000
Total fixed costs
$1,240,000
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses absorption costing. Prepare an income statement for last year.
Required 1
Required 2
Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
Unit product cost
Required 1
Required 2
:......................................................................................................................................................
Assume that the company uses absorption costing. Prepare an income statement for last year.
Chuck Wagon Grills, Inc.
Absorption Costing Income Statement
Net operating income(loss)
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aae7596-3576-430c-82f6-10ee55882af9%2Fded378d0-739d-4af3-b9da-20b733ba7b7e%2Fza6akdrd_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Chuck Wagon Grills, Inc., 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
26,000
22,000
4,000
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
$4
50
80
Variable manufacturing overhead
Variable selling and administrative
20
10
Total variable cost per unit
2$
160
Fixed costs:
$ 910,000
Fixed manufacturing overhead
Fixed selling and administrative
330,000
Total fixed costs
$1,240,000
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses absorption costing. Prepare an income statement for last year.
Required 1
Required 2
Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
Unit product cost
Required 1
Required 2
:......................................................................................................................................................
Assume that the company uses absorption costing. Prepare an income statement for last year.
Chuck Wagon Grills, Inc.
Absorption Costing Income Statement
Net operating income(loss)
$
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