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		10,000
Units sold		9,300
Units in ending inventory		700
Variable costs per unit:
Direct materials	$	63
Direct labor		34
Variable manufacturing overhead		12
Variable selling and administrative		20
Total variable cost per unit	$	129
Fixed costs:
Fixed manufacturing overhead	$	350,000
Fixed selling and administrative		520,000
Total fixed costs	$	870,000

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.