How to Calculate Product Costs for a Manufacturer - dummies
In the example, the business manufactured 120,000 units and sold 110,000 units during the year, and its product cost per unit is $760. The 110,000 total units sold during the year is multiplied by the $760 product cost to compute the $83.6 million cost of goods sold expense, which is deducted against the company's revenue from selling 110,000 units during the year.