Answer:
(a)unit cost of goods manufactured is $108.00
(b)unit cost of goods manufactured is $122.00
Explanation:
Varibale Product Costing = Direct Material + Direct Labor + Variable Overheads
Absorption Product Costing = Direct Material + Direct Labor + Variable Overheads + Fixed Overheads
<u>(a) the unit cost of goods manufactured- the variable costing concept</u>
Variable cost of goods manufactured ($1,620,000/15,000 units) = $108.00
unit cost of goods manufactured = $108.00
<u>(b) the unit cost of goods manufactured - the absorption costing concept</u>
Variable cost of goods manufactured ($1,620,000/15,000 units) = $108.00
Fixed manufacturing costs ($210,000/ 15,000 units) = $14.00
unit cost of goods manufactured = $122.00
