CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $205. Data for last years operations follow:

Units in beginning inventory		0
Units produced		10,300
Units sold		9,300
Units in ending inventory		1,000
Variable costs per unit:
Direct materials	$	61
Direct labor		33
Variable manufacturing overhead		14
Variable selling and administrative		17
Total variable cost per unit	$	125
Fixed costs:
Fixed manufacturing overhead	$	319,300
Fixed selling and administrative		505,000
Total fixed costs	$	824,300

Assume in this exercise that the company uses absorption costing.

Required:

1.	Compute the unit product cost for one computer desk. (Round your intermediate calculations and final answer to the nearest dollar amount.)

Unit product cost

$

2.	Assume that the company uses absorption costing. Prepare an income statement. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest dollar amount.)

Absorption Costing Income Statement
(Click to select)Net operating income (loss)Selling and administrative expensesSalesGross marginCost of goods sold	$
(Click to select)Net operating incomeCost of goods soldGross marginSalesSelling and administrative expenses
(Click to select)Gross marginContribution margin
(Click to select)Gross marginSelling and administrative expensesCost of goods soldNet operating income (loss)Sales
(Click to select)Net operating lossNet operating income	$