Problem 1 Harris stereo technology inc produces and sells a single product, a stereo amplifiers. Selected cost and operating data relating to the product for two years are given below years 2016 years 2017 units in beginning inventory 0 80.000 units produced during the year 400.000 0.000 units sold during the year 320.000 320.000 units in ending inventory 80.000 0 Selling price per unit $ 2.000 Manufacturing Costs: Variable per unit produced Direct Materials $ 660 Direct Labor $ 240 Variable Overhead $ 5.000.000 Setting an Administrative cost Variable per unit sold $ 160 Fixed per years $ 2.800.000 Required: 1. Compute the unit product cost in each year uses absorption costing and variable costing Solution: Absorption costing Variable costing Direct material $ 660 $ 660 Direct labor $ 240 $ 240 variable manufacturing Overhead $ 160 $ 160 Fix Manufacturing Overhead $7 Unit Product Cost $ 1.067 $ 1.060