Fanning Manufacturing Company was started on January 1, Year 1, when it acquired $83,000 cash by issuing common stock. Fanning immediately purchased office furniture and manufacturing equipment costing $7,700 and $27,200, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,500 salvage value and an expected useful life of three years. The company paid $12,000 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid $11,940 for raw materials that were used to make inventory. All inventory was started and completed during the year. Fanning completed production on 4,400 units of product and sold 3,480 units at a price of $15 each in Year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required:
Determine the total product cost and the average cost per unit of the inventory produced in 2018.