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		9,900
Units sold		9,200
Units in ending inventory		700
Variable costs per unit:
Direct materials		$ 62
Direct labor		37
Variable manufacturing overhead		13
Variable selling and administrative		20
Total variable cost per unit		$ 132
Fixed costs:
Fixed manufacturing overhead	$	306,900
Fixed selling and administrative		500,000
Total fixed costs	$	806,900

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.