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		9,800
Units sold		9,100
Units in ending inventory		700
Variable costs per unit:
Direct materials	$	64
Direct labor		37
Variable manufacturing overhead		12
Variable selling and administrative		17
Total variable cost per unit	$	130
Fixed costs:
Fixed manufacturing overhead	$	323,400
Fixed selling and administrative		505,000
Total fixed costs	$	828,400

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.