Part II - Calculating the Unit Product Cost Under Absorption Costing and Preparing an Income Statement for the Last Year Using Absorption Costing Chuck Wagon Grills, Inc. makes a single product- a handmade specialty barbeque grill that it sells for $215. Data for last year's operations follow: Units in beginning inventory 0 10,000 Units produced during the year Units sold during the year. Units in ending inventory 9,100 900 Variable Costs per Unit: Direct materials $ 61 Direct labor... 38 Variable manufacturing overhead 11 Variable selling and administrative...... 16 Total Variable Costs per Unit: $ 126 Fixed Costs: Fixed manufacturing overhead $ 350,000 Fixed selling and administrative.... 500,000 Total Fixed Costs: $ 850,000 Requirements 1. Assume the company uses absorption costing. Calculate the total unit product cost for one barbeque grill. Identify the cost per unit for each cost component (and total cost per unit) below: Materials: Labor: MOH: Total: 2. Prepare an income statement for last year using absorption costing. Assume the total unit product cost for one barbeque grill is $145. Chuck Wagon Grills, Inc. Absorption Costing Income Statement