Absorption Costing Assignment
Chuck Wagon Grills, Inc., makes operations follow a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's Units in beginning inventory Units produced 0 9,600 9,200 Units sold Units in ending inventory 400 Variable costs per unit: Direct materials 62 Direct labor 36 Variable manufacturing overhead Variable selling and administrative 14 19 131 Total variable costs per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $268,800 505,000 Total fixed costs $773,800
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. 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 Complete this question by entering your answers in the tabs below. Required 2 Required 1 Assume that the company uses absorption costing. Prepare an income statement for last year Chuck Wagon Grills, Inc. Absorption Costing Income Statement Net operating income (loss)
