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		9,700
Units sold		9,100
Units in ending inventory		600
Variable costs per unit:
Direct materials	$	60
Direct labor		33
Variable manufacturing overhead		12
Variable selling and administrative		20
Total variable cost per unit	$	125
Fixed costs:
Fixed manufacturing overhead	$	291,000
Fixed selling and administrative		515,000
Total fixed costs	$	806,000

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.