Question

Cost of Goods Manufactured, using Variable Costing and Absorption Costing

On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 units and sold 1,500 units. The following income statement was prepared, based on the variable costing concept:

Barnard Inc.
Variable Costing Income Statement
For the Year Ended March 31, 20Y1
Sales   $390,000   
Variable cost of goods sold:    
Variable cost of goods manufactured $225,000     
Inventory, March 31 (37,500)    
Total variable cost of goods sold   (187,500)  
Manufacturing margin   $202,500   
Total variable selling and administrative expenses   (46,500)  
Contribution margin   $156,000   
Fixed costs:    
Fixed manufacturing costs $102,600     
Fixed selling and administrative expenses 31,500       
Total fixed costs     (134,100)  
Operating income   $21,900   

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Variable costing $
Absorption costing $

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