Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $215. Data for last years operations follow:

Units in beginning inventory		0
Units produced		10,400
Units sold		9,300
Units in ending inventory		1,100
Variable costs per unit:
Direct materials	$	64
Direct labor		30
Variable manufacturing overhead		14
Variable selling and administrative		17
Total variable cost per unit	$	125
Fixed costs:
Fixed manufacturing overhead	$	343,200
Fixed selling and administrative		525,000
Total fixed costs	$	868,200

Required:

1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.

2. Assume that the company uses absorption costing. Prepare an income statement for last year.