Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $205. Data for last years operations follow:

Units in beginning inventory		0
Units produced		10,400
Units sold		9,000
Units in ending inventory		1,400
Variable costs per unit:
Direct materials	$	64
Direct labor		40
Variable manufacturing overhead		14
Variable selling and administrative		21
Total variable cost per unit	$	139
Fixed costs:
Fixed manufacturing overhead	$	364,000
Fixed selling and administrative		510,000
Total fixed costs	$	874,000

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.