During 2020, Rafael Corp. produced 47,340 units and sold 47,340 for $14 per unit. Suppose the accountant for Rafael Corp. uses normal costing and uses the budgeted volume of 52,600 units. Variable manufacturing costs were $5 per unit. Annual fixed manufacturing overhead was $94,680 ($2 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $10,520. 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.

Prepare a normal-costing income statement for the first year of operation. Rafael Corp. Income Statement-Normal Costing $