Compute the unit product cost. Assume that the company uses absorption costing.

Unit product cost

Prepare an income statement for the year. Assume that the company uses absorption costing.

Lynch Company
Absorption Costing Income Statement

Compute the unit product cost. Assume that the company uses variable costing

Unit product cost

Prepare an income statement for the year. Assume that the company uses variable costing

Lynch Company
Variable Costing Income Statement

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 34,000 units and sold 26,000 units. The selling price of the company's product is $44 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below