Question

Required information SB Exercise 6-14 through Exercise 6-15 (Static) (The following information applies to the questions displayed below.] Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: 20,000 19,000 1,000 $ Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed cost Faxed manufacturing overhead Pixed selling and administrative Total fixed costs 50 BO 20 10 160 $ $ 700,000 285,000 $ 985,000

Answer 1

M N o P Q R 16 17 18 19 20 21 22 23 Chuck Wagon Grills, Inc. Variable Costing Income Statement Particulars Amount Amount Sales $ 3,990,000 Variable expenses: Variable cost of Goods sold $ 2,850,000 (150*19000) Variable selling and administrative $ 190,000 (10*19000) Total Variable cost of goods sold $ 3,040,000 Contribution margin $ 950,000 24 25 26 27 28 29 30 Less: Fixed costs Fixed manufacturing overhead $ Fixed selling and administrative Expenses $ Total Fixed costs Net operating Income 700,000 285,000 31 32 $ $ 985,000 -35,000 33 34 35 36 I hope this solves your doubt. Feel free to comment if you still have any query or need something else. I'll help asap. Do give a thumbs up if you find this helpful. 37 20