Preparing an Income Statement for the Last Year Using Absorption Costing Chuck Wagon Grills, Inc. makes a single product a handmade specialty barbeque grill that it sells for $215. Data for last year's operations follow: 0 Units in beginning inventory Units produced during the year 10,000 Units sold during the year 9,100 Units in ending inventory 900 Variable Costs per Unit: Direct materials $ 61 Direct labor 38 11 16 $ 126 Variable manufacturing overhead Variable selling and administrative Total Variable Costs per Unit: Fixed Costs: Fixed inanufacturing overhead Fixed selling and administrative. $ 350,000 500,000 $ 850,000 Total Fixed Costs: Requirements 1. Assume the company uses absorption costing. Calculate the total unit product cost for one barbeque grill. Identify the cost per unit for each cost component (and total cost per unit) below: Materials: Labor: MOH: Total: 2. Prepare an income statement for last year using absorption costing. Assume the total unit product cost for one barbeque grills $145. Chuck Wagon Grills, Inc. Absorption Costing income Statement