Question:-3.Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow:

Units in beginning inventory0Units produced9,600Units sold8,700Units in ending inventory900Variable costs per unit:Direct materials$80Direct labor20Variable manufacturing overhead10Variable selling and administrative30Total variable cost per unit$140Fixed costs:Fixed manufacturing overhead$170,000Fixed selling and administrative220,000Total fixed costs$390,000

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. Make 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?

Question:4Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $205. Data for last year's operations follow:

Units in beginning inventory0Units produced9,600Units sold9,500Units in ending inventory100Variable costs per unit:Direct materials$63Direct labor30Variable manufacturing overhead12Variable selling and administrative19Total variable cost per unit$124Fixed costs:Fixed manufacturing overhead$307,200Fixed selling and administrative505,000Total fixed costs$812,200

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.Make an income statement for last year.