Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $220. Data for last years operations follow:

Units in beginning inventory		0
Units produced		9,900
Units sold		9,100
Units in ending inventory		800
Variable costs per unit:
Direct materials	$	65
Direct labor		36
Variable manufacturing overhead		15
Variable selling and administrative		20
Total variable cost per unit	$	136
Fixed costs:
Fixed manufacturing overhead	$	316,800
Fixed selling and administrative		500,000
Total fixed costs	$	816,800

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.