On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 25.600 units and sold 24,200 units. The following income statement was prepared, based on the variable costing concept $10,890,000.00 Frankenver Inc Variable Costing Income Statement For the Year Ended December 31, 2011 1 Sales 2. Variable cost of goods sold: Variable cost of goods manufactured $6.144.000.00 Inventory December 31 (336,000.00) Total variable cost of goods sold 6 Monacturing margin Total variable selling and administrative expenses Contribution margin 5.808,000.00 $5.082.000.00 1.155.000.00 $3.927.000.00 Cost of goods manufactured, using variable costing and absorption costing Instructions Question Instructions Variable Costing Income Statement For the Year Ended December 31, 20Y1 1 Sales $10,890,000.00 3 $6,144,000.00 (336,000.00) 4 2 Variable cost of goods sold: Variable cost of goods manufactured Inventory, December 31 Total variable cost of goods sold 6 Manufacturing margin 7 Total variable selling and administrative expenses 8 Contribution margin 5 5,808,000.00 $5,082,000.00 1,155,000.00 $3,927,000.00 9 Fixed costs: 10 Fixed manufacturing costs 11 Fixed selling and administrative expenses Total fixed costs $1,280,000.00 870,000.00 12 2,150,000.00 13 Income from operations $1,777,000.00 Item Cost of goods manufactured, using variable costing and absorption costing Instructions Question $6,144,000.00 (336,000.00) 5 Instructions 3 Variable cost of goods manufactured Inventory, December 31 Total variable cost of goods sold 6 Manufacturing margin 7 Total variable selling and administrative expenses * Contribution margin 9 Fixed costs: Fixed manufacturing costs 11 Fixed selling and administrative expenses Total fixed costs 13 Income from operations 5,808,000.00 $5,082,000.00 1,155,000.00 $3,927,000.00 10 $1,280,000.00 870,000.00 12 2,150,000.00 $1,777,000.00 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept