Bobs Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs:

Variable cost per unit
	Direct materials	$6.50
	Direct labour	2.80
	Variable manufacturing overhead	5.95
	Variable selling and administrative expenses	3.60
Fixed costs for year
	Fixed manufacturing overhead	$352,980
	Fixed selling and administrative expenses	239,400

Bobs Company sells the fishing lures for $26. During 2020, the company sold 71,700 lures and produced 95,400 lures.Assuming the company uses absorption costing, calculate Bobs manufacturing cost per unit for 2020. (Round answer to 2 decimal places, e.g. 15.25.)

Manufacturing cost

$

per unit

Prepare an absorption-costing income statement for 2020.

BOB'S COMPANY Income StatementAbsorption Costing December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
VariableFixedSalesEnding inventoryCost of goods manufacturedSelling and administrative expensesGross profitCost of goods soldBeginning inventoryNet income				$
AddLess: Cost of goods soldEnding inventoryNet incomeSalesBeginning inventoryGross profitFixedCost of goods manufacturedSelling and administrative expensesVariable
Net incomeFixedCost of goods soldSelling and administrative expensesSalesEnding inventoryGross profitVariableCost of goods manufacturedBeginning inventory
AddLess: FixedGross profitEnding inventorySelling and administrative expensesBeginning inventoryVariableNet incomeCost of goods manufacturedCost of goods soldSales
Net incomeBeginning inventoryGross profitVariableSelling and administrative expensesCost of goods manufacturedSalesFixedCost of goods soldEnding inventory		$
Cost of goods manufacturedSelling and administrative expensesEnding inventoryGross profitSalesVariableCost of goods soldBeginning inventoryNet incomeFixed
Ending inventoryFixedCost of goods soldVariableSalesNet incomeGross profitCost of goods manufacturedSelling and administrative expensesBeginning inventory				$

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