Answer EXERCISE 8-6

EXERCISE 8-5 Variable Costing Unit Product Cost and Income Statement; Break-Even [LO1, LO21 Exercise 8-5: Help Me Solve It Tutorial Click here to view a transcript of this video Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: Units produped.. Units sold.... Units in ending inventory.... Variable costs per unit 21500 3,500 Direct materials Urect bour.... Variable selling and administrative $ 8 otal variable cost par unit Fied costs Fed seling and administrative... Total fxed costs.. 10.000 $85.000 Assume that the company uses variable costing. Compute the unit product cost for one storage cabinet Assume that the company uses variable costing. Prepare a contribution format income statement for the year What is the company's break-even point in terms of units sold? 1. 2. 3. EXERCISE 8-6 Absorption Costing Unit Product Cost; Income Statement [L01, LO2) Refer to the data in Exercise 8-5 for Waterloo Storage Products. Assume in this exercise that the company uses absorption costing. 1. Compute the unit product cost for one storage cabinet. 2. Prepare an income statement for the year