Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last years operations follow:

Units in beginning inventory		0
Units produced		20,000
Units sold		19,000
Units in ending inventory		1,000
Variable costs per unit:
Direct materials		$ 50
Direct labor		80
Variable manufacturing overhead		20
Variable selling and administrative		10
Total variable cost per unit		$ 160
Fixed costs:
Fixed manufacturing overhead	$	700,000
Fixed selling and administrative		285,000
Total fixed costs	$	985,000

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.