Question

Swansea Finishing produces and sells a decorative pillow for $ 98.00 per unit. In the first month of​ operation, 2,400 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month​ includes:

Variable manufacturing costs $ 25.00 per unit

Variable marketing costs $ 5.00 per unit

Fixed manufacturing costs $ 16.00 per unit

Administrative​ expenses, all fixed $ 22.00 per unit

Ending​ inventories:

Direct materials 0

WIP 0

Finished goods 650 units


What is cost of goods sold per unit using variable​ costing?

Answer 1

Cost of Goods Sold per unit = $25.00

Step-by-step explanation:

Manufacturing Costs under variable Costing only considers the Variable Manufacturing Costs as Products Cost. Fixed Manufacturing Costs and All Non- Manufacturing Costs are treated as Period Costs.

Manufacturing Cost per unit = Variable manufacturing costs

= $25.00

Therefore,

Cost of Goods Sold per unit = $25.00