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7 Feb 2018
Chuck Wagon Grills, Inc., makes a single productâa handmade specialty barbecue grill that it sells for $200. Data for last yearâs operations follow:
Units in beginning inventory 0 Units produced 10,000 Units sold 8,800 Units in ending inventory 1,200 Variable costs per unit: Direct materials $ 60 Direct labor 40 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead $ 180,000 Fixed selling and administrative 330,000 Total fixed costs $ 510,000
Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost____________
2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year.
Chuck Wagon Grills, Inc. Variable Costing Income Statement Variable expenses: 0 0 Fixed expenses: 0
Chuck Wagon Grills, Inc., makes a single productâa handmade specialty barbecue grill that it sells for $200. Data for last yearâs operations follow:
Units in beginning inventory | 0 | |
Units produced | 10,000 | |
Units sold | 8,800 | |
Units in ending inventory | 1,200 | |
Variable costs per unit: | ||
Direct materials | $ | 60 |
Direct labor | 40 | |
Variable manufacturing overhead | 10 | |
Variable selling and administrative | 30 | |
Total variable cost per unit | $ | 140 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 180,000 |
Fixed selling and administrative | 330,000 | |
Total fixed costs | $ | 510,000 |
Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost____________
2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year.
Chuck Wagon Grills, Inc. | ||
Variable Costing Income Statement | ||
Variable expenses: | ||
0 | ||
0 | ||
Fixed expenses: | ||
0 |
Lelia LubowitzLv2
8 Feb 2018