I can see the image you uploaded. The task involves calculating unit product cost under two costing methods: variable costing and full costing, for a given set of data from Midlands State University's accounting sciences test. Let's break this down:

Data Summary:

• Initial stock: 5,000 units
• Units produced: 60,000 units
• Units sold: 63,000 units
• Direct materials cost: $1,200,000
• Direct labour cost: $1,800,000
• Variable manufacturing overheads: $360,000
• Fixed manufacturing overheads: $500,000
• Total cost: $3,860,000
• Unit selling price: $150
• Fixed period costs: $600,000
• Selling, administrative & distribution costs: $24 per unit

Part a: Unit Product Cost

1. Variable Costing: Under variable costing, we only consider variable costs for manufacturing the product. This includes direct materials, direct labor, and variable overhead.

   • Direct materials cost = $1,200,000
   • Direct labor cost = $1,800,000
   • Variable manufacturing overheads = $360,000
   • Total variable costs = $1,200,000 + $1,800,000 + $360,000 = $3,360,000

   To find the variable unit product cost: $\text{Variable Unit Cost} = \frac{\text{Total Variable Costs}}{\text{Units Produced}} = \frac{3,360,000}{60,000} = \$56$

2. Full Costing: Full costing includes both variable and fixed costs. We add the fixed manufacturing overheads to the variable costs.

   • Fixed manufacturing overheads = $500,000
   • Total manufacturing cost (variable + fixed) = $3,360,000 + $500,000 = $3,860,000

   To find the full unit product cost: $\text{Full Unit Cost} = \frac{3,860,000}{60,000} = \$64.33$

Part b: If 10,000 additional units were manufactured

The question asks for the unit product cost under both methods if an additional 10,000 units were manufactured.

1. Variable Costing: The variable costs per unit remain the same since they are per unit costs. Hence: $\text{New Variable Unit Cost} = \$56$

2. Full Costing: With 10,000 additional units, the fixed manufacturing overhead is spread over a larger number of units, lowering the full unit cost.

   • New total units = 60,000 + 10,000 = 70,000 units $\text{New Full Unit Cost} = \frac{3,860,000}{70,000} = \$55.14$

This provides answers for the required parts of the problem.

Would you like more details or have any questions? Here are some related questions to explore further:

1. How does fixed overhead affect unit costs in full costing?
2. Why does the variable cost per unit remain constant?
3. How would selling, administrative, and distribution costs impact profitability analysis?
4. What are the main differences between variable and absorption (full) costing?
5. How would profits change if 70,000 units were sold instead of 63,000 units?

Tip: When manufacturing additional units, fixed costs are spread over more units, reducing the per-unit cost in full costing.