5 Chuck Wagon Gils, Inc., makes a single product-a handmade specialty barbecue g

Question

5 Chuck Wagon Gils, Inc., makes a single product-a handmade specialty barbecue grill that it ells for $200. Data for last year's operations follow 1 85 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: 10,108 8, 1,800 $ 68 48 18 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit $ 148 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 23e,ee0 Total fixed costs $428,000 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. 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? Complete this question by entering your answers in the tabs below Type here to search

Explanation / Answer

1) Unit product cost

2) Contribution format income statement :

3) Break even point = 420000/(200-140) = 7000 Units

Direct material 60 Direct labour 40 Variable manufacturing overhead 10 Unit product cost 110

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