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Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $215. Data for last year's operations follow: Units in
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $215. Data for last year's operations follow: Units in beginning inventory Units produced Units sold 9,900 9,000 900 Units in ending inventory Variable costs per unit: Direct materials Direct labor 62 37 Variable manufacturing overhead Variable selling and administrative 14 21 Total variable cost per unit $ 134 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $336,600 515,000 Total fixed costs 851,600 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 Required 2
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