Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $215. Data for last year's operations follow:

Units in beginning inventory0Units produced9,900Units sold9,400Units in ending inventory500Variable costs per unit:Direct materials$64Direct labor35Variable manufacturing overhead12Variable selling and administrative19Total variable cost per unit$130Fixed costs:Fixed manufacturing overhead$287,100Fixed selling and administrative505,000Total fixed costs$792,100

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 income statement for last year.