Chuck Wagon Grills, Incorporated, makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last years operations follow:

Units in beginning inventory	0
Units produced	24,000
Units sold	21,000
Units in ending inventory	3,000
Variable costs per unit:
Direct materials	$ 50
Direct labor	80
Variable manufacturing overhead	20
Variable selling and administrative	10
Total variable cost per unit	$ 160
Fixed costs:
Fixed manufacturing overhead	$ 840,000
Fixed selling and administrative	315,000
Total fixed costs	$ 1,155,000

Exercise 4-15 (Algo) Absorption Costing Unit Product Cost and Income Statement [LO61, LO62]

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.