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		10,100
Units sold		9,100
Units in ending inventory		1,000
Variable costs per unit:
Direct materials	$	62
Direct labor		33
Variable manufacturing overhead		14
Variable selling and administrative		16
Total variable cost per unit	$	125
Fixed costs:
Fixed manufacturing overhead	$	323,200
Fixed selling and administrative		510,000
Total fixed costs	$	833,200

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.