1. Under variable costing, the unit product cost would be:

2. Under absorption costing, the cost of goods sold for the year would be:

The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: S 38 Production Selling and administrative 14 Fixed costs per year: Production $140,000 Selling and administrative $84,000 Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory