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		10,400
Units sold		9,500
Units in ending inventory		900
Variable costs per unit:
Direct materials	$	61
Direct labor		34
Variable manufacturing overhead		13
Variable selling and administrative		18
Total variable cost per unit	$	126
Fixed costs:
Fixed manufacturing overhead	$	343,200
Fixed selling and administrative		515,000
Total fixed costs	$	858,200

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.