Question
Can you help me put this together and explain how? Lynch Company manufactures and sells a single product. The following costs were incurred during the
Can you help me put this together and explain how?
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:
Variable costs per unit:Manufacturing:Direct materials$12Direct labor$4Variable manufacturing overhead$2Variable selling and administrative$2Fixed costs per year:Fixed manufacturing overhead$370,000Fixed selling and administrative$200,000
During the year, the company produced 37,000 units and sold 18,000 units. The selling price of the company's product is $55 per unit.
Required:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b.Need a income statement for the year.
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
b. Need a income statement for the year.
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