Lynch company absorption costing income statement

  • No School
  • AA 1
  • 4

This preview shows page 2 - 4 out of 4 pages.

Lynch Company Absorption Costing Income Statement Sales | $ 1,350,000 Cost of goods sold 850,000 Gross margin 500,000 Selling and administrative expense Net operating income $ 500,000 Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that It sells for $300. Data for last year's operations follow: 9,600 8,500 1,100 80 40 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable
Image of page 2
selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 30 169 $ 150,00 760,00 $ 910,000 Required: 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. Required 1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement Sales $ 2,550,000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses $ 1,105,000 255,000 1,360,000 1,190,000 Fixed expenses: 150,000 Fixed
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes