Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first

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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:

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During the year, the company produced 25,000 units and 20,000 sold company's product is $50 per unit.

Required:

1. Assume that the company uses absorption costing:

a. Compute the unit product cost.

b. Prepare an income statement for the year.

2. Assume that the company uses variable costing:

a. Compute the unit product cost.

b. Prepare an income statement for theyear.

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9780072834949

11th Edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

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