35

During 2020, Rafael Corp. produced 27,120 units and sold 27,120 for $14 per unit. Suppose the accountant for Rafael Corp. uses normal costing and uses the budgeted volume of 45,200 units. Variable manufacturing costs were $6 per unit. Annual fixed manufacturing overhead was $54,240 ($3 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $36,160. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.

Calculate the manufacturing cost per unit.(Round answer to 2 decimal places, e.g. 5.25.)

Manufacturing cost$ 7.2

per unit

Rafael Corp.

Income Statement?Normal Costing

December 31, 2020

For the Month Ended December 31, 2020

For the Year Ended December 31, 2020

Sales

Fixed costs

Variable costs

Operating income before tax

Cost of goods sold

Contribution margin

Gross margin

$

Contribution margin

Sales

Operating income before tax

Gross margin

Fixed costs

Variable costs

Cost of goods sold

:

Cost of goods sold

Costs of goods manufactured

Selling and administrative expenses

Beginning inventory

Ending inventory

Volume variance

Goods available for sale

$

Add

Less

:

Volume variance

Costs of goods manufactured

Goods available for sale

Cost of goods sold

Beginning inventory

Ending inventory

Selling and administrative expenses

Goods available for sale

Ending inventory

Cost of goods sold

Costs of goods manufactured

Beginning inventory

Selling and administrative expenses

Volume variance

Add

Less

:

Cost of goods sold

Volume variance

Goods available for sale

Selling and administrative expenses

Beginning inventory

Costs of goods manufactured

Ending inventory

Sales

Gross margin

Cost of goods sold

Contribution margin

Operating income before tax

Fixed costs

Variable costs

Add

Less

:

Selling and administrative expenses

Volume variance

Costs of goods manufactured

Ending inventory

Goods available for sale

Cost of goods sold

Beginning inventory

Operating income before tax

Variable costs

Gross margin

Cost of goods sold

Fixed costs

Sales

Contribution margin

$