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		10,100
Units sold		9,200
Units in ending inventory		900
Variable costs per unit:
Direct materials	$	62
Direct labor		31
Variable manufacturing overhead		13
Variable selling and administrative		17
Total variable cost per unit	$	123
Fixed costs:
Fixed manufacturing overhead	$	343,400
Fixed selling and administrative		510,000
Total fixed costs	$	853,400

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.