Reference no: EM132972682

Tamarisk Manufacturing produces basketballs used for indoor and outdoor games. The company has had significant troubles over the past few years, as the number of competitors in the basketball market has increased dramatically. Recently, the company was forced to cut back production in order to reduce its rising inventory level.

The following is a list of costs for the company in 2022:

Variable costs per unit

Rubber
$2.80 Other materials-indirect
1.50 Ball makers-direct labour
5.80 Factory electricity usage
0.50 Factory water usage
0.20 Other labour-indirect
0.27 Selling and administrative expenses
0.40 Fixed costs per year

Factory property taxes
$132,000 Factory sewer usage
55,000 Factory electricity usage
44,000 Selling and administrative expenses
91,300

Tamarisk Manufacturing had an ending inventory of 93,500 basketballs in 2021. For these units, the fixed manufacturing overhead cost was $4.00 per unit and variable manufacturing costs were $9.67 per unit. In 2022, the company produced 38,500 basketballs, sold 79,800 basketballs, and had an ending inventory of 52,200 basketballs. The basketballs sold for $18.00 each. Tamarisk uses the FIFO method.

Problem 1: Calculate Tamarisk' manufacturing cost per unit under a variable-costing system. (Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.)