Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,400 units and sold 2,900 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 Variable cost of goods sold: Variable cost of goods manufactured Inventory, March 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs $754,000 $425,000 (62,500) (362,500) $391,500 (89,900) $301,600 $193,800 60,900 (254,700) $46,900 Operating income Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption