159 Segmented Reporting and Performance Evaluation PRACTICE TEST PROBLEM 1 Barth Industries began operations on January 1, 2004. The company sells a single product for $10 per unit. During 2004, 60,000 units were produced and 50,000 units were sold. There was no work in process inventory at December 31, 2004. Barth uses an actual cost system for product costing and actual costs for 2004 were as follows: Variable Costs $2.00 per unit produced $1.00 per unit produced $0.50 per unit produced $0.80 per unit sold Fixed Costs Direct materials.... Manufacturing overhead. Selling and administrative expense.. $60,000 .$40,000 Instructions: 1. What is the product cost per unit under each of the following? a. variable costing b. absorption costing