9.

Cost of Goods Manufactured, using Variable and Absorption Costing

On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept:

Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1
Sales			$9,600,000
Variable cost of goods sold:
Variable cost of goods manufactured	$5,376,000
Ending inventory	(336,000)
Total variable cost of goods sold			5,040,000
Manufacturing margin			$4,560,000
Total variable selling and administrative expenses			1,150,000
Contribution margin			$3,410,000
Fixed costs:
Fixed manufacturing costs	$1,664,000
Fixed selling and administrative expenses	890,000
Total fixed costs			2,554,000
Income from operations			$ 856,000

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

Variable costing	$
Absorption costing	$