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During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepared the following income statement

During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepared the following income statement based on the variable costing concept:

Olympic Inc. Variable Costing Income Statement For Year Ended August 31, 20--

Sales

$297,000

Variable cost of goods sold:
Variable cost of goods manufactured

$288,000

Less ending inventory

72,000

Variable cost of goods sold

216,000

Manufacturing margin

$ 81,000

Variable selling and administrative expenses

40,500

Contribution margin

$ 40,500

Fixed costs:
Fixed manufacturing costs

$ 12,000

Fixed selling and administrative expenses

10,800

22,800

Income from operations

$ 17,700

?

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

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