Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $205. Data for last years operations follow:

Units in beginning inventory		0
Units produced		10,100
Units sold		9,400
Units in ending inventory		700
Variable costs per unit:
Direct materials	$	62
Direct labor		36
Variable manufacturing overhead		11
Variable selling and administrative		20
Total variable cost per unit	$	129
Fixed costs:
Fixed manufacturing overhead	$	353,500
Fixed selling and administrative		510,000
Total fixed costs	$	863,500

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 a contribution format income statement for last year.