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 $ per unit Prepare a normal-costing income statement for the first year of operation. Rafael Corp. Income Statement-Normal Costing For the Year Ended December 31, 2020 A Sales Cost of goods sold Beginning inventory $ Add Costs of goods manufactured Add Volume variance Gross margin Less : Selling and administrative expenses Operating income before tax 4