Chuck Wagon Grits INC. makes a single product a handmade barbeque grill that it sells for $200. Data for last years operation follows below: Units in beginning inventory 0,units produced 10,200, unit sold 9,000 units in ending, variable cost per units $80 (direct materials), $20 (direct Labor) $10 (variable manufacturing overhead ) ( variable selling in administrative ) $30.....total variable cost per unit $140 Fixed Cost Fixed manufacturing overhead $180,000 fixed selling and administrative $150,000 total fixed cost $330,00
1. Assume the company is using variable costing, Compute the unit product cost for one barbecue.
2. Assume the company is using 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?
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