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Exercise 6-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO6-1, LO6-2) Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue
Exercise 6-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO6-1, LO6-2) Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow: 10 points Units in beginning inventory Units produced Units sold Units in ending inventory variable co ts per unit 10,200 9,B00 1,400 01:5838 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 80 20 10 30 140 cBook Fixed costs: Fixed nanufacturing overhead Fixed selling and administrative Total fixed costs 160,000 320,000 Prin: 480,000 References Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold? Complete this question by entering your answers in the tabs below Required1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last yean Chuck Wagon Grills, Inc. Variable Costing Income Statement S 1,760,0D0 e expenses Variable cost of goods sold Variable selling and admin strative expenses 1,760,000 Variable cost of goods sold
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