ch6 exer 8

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $200. Data for last years operations follow:

Units in beginning inventory		0
Units produced		10,200
Units sold		8,100
Units in ending inventory		2,100
Variable costs per unit:
Direct materials		$ 60
Direct labor		40
Variable manufacturing overhead		10
Variable selling and administrative		30
Total variable cost per unit		$ 140
Fixed costs:
Fixed manufacturing overhead	$	240,000
Fixed selling and administrative		90,000
Total fixed costs	$	330,000

Required:

1.	Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.

Unit product cost