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SB Exercise $6-14$ through Exercise $6-15($Algo$)$

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Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $$210.$ Data for last year$$s operations follow:

Units in beginning inventory $0$

Units produced $25,200$

Units sold $21,600$

Units in ending inventory $3,600$

Variable costs per unit:

Direct materials $ $50$

Direct labor $80$

Variable manufacturing overhead $20$

Variable selling and administrative $10$

Total variable cost per unit $ $160$

Fixed costs:

Fixed manufacturing overhead $ $882,000$

Fixed selling and administrative $324,000$

Total fixed costs $ $1,206,000$

Exercise $6-15($Algo$)$ Absorption Costing Unit Product Cost and Income Statement $[$LO$61,$ LO$62]$

Required:

Assume the company uses absorption costing. Compute the unit product cost for one barbecue grill.

Assume the company uses absorption costing. Prepare an income statement for last year.