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: 24, eee 21, eee 3, eee $ 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 50 80 2e 1e 160 $ $ 840,000 315, eee $1,155, eee Exercise 6-15 (Algo) Absorption Costing Unit Product Cost and Income Statement (L06-1, L06-2] 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill Unit product cost Requina Required 2 > During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: $ Sales (@ $61 per unit) Cost of goods sold (@$38 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 915, eee 570,000 345,000 299,000 46,000 Year 2 $ 1,525, eee 950,000 575,000 329, eee $ 246, eee $ $3 per unit variable: $254,000 fixed each year. The company's $38 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($380,000 + 20, eee units) Absorption costing unit product cost $ 8 10 1 19 $ 38 Production and cost data for the first two years of operations are: Units produced Units sold Year 1 2e, ese 15,000 Year 2 2e, eee 25,800 N Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cout Required 2 >