Response to the following problem:
On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 2,000 units and sold 1,700 units. The following income statement was prepared, based on the variable costing concept: Johnson Industries, Inc. Variable Costing Income Statement For the Year Ended June 30, 2013
Sales $782,000
Variable cost of goods sold:
Variable cost of goods manufactured $442,000
Less inventory, July 31 66,300
Variable cost of goods sold 375,700
Manufacturing margin $406,300
Variable selling and administrative expenses 93,500
Contribution margin $312,800
Fixed costs:
Fixed manufacturing costs $202,000
Fixed selling and administrative expenses 62,900 264,900
Income from operations $47,900
Determine the unit cost of goods manufactured, based on
(a) the variable costing concept and
(b) the absorption costing concept.