Exercise 7-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements (L07-1 L07-2) Lynch Company manufactures and sells a single product. The following costs were incurred during the company's list year of operations ST Varkable costruiti Manufacturing Directors Direct labor Variable materiarhaad 52 Variable linistrative 32 Fixed costs per year Forecture overed $24.900 Fire selling and dinistrative $158. During the year, the company produced 31000 units and sold 2.000 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. Prepare an come statement for the year 2. Assume that the company uses variable costing Compute the unit product cost Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req 2B Compute the unit product cost. Assume that the company uses absorption costing, Un tiroduct Cost Root Reg 1B > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Red 2A Req 2B Prepare an income statement for the year. Assume that the company uses absorption costing. Lynch Company Absorption Costing Income Statement ( Req 1A Req 2A > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Compute the unit product cost. Assume that the company uses variable costing. Unit product COSE complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B Prepare an income statement for the year. Assume that the company uses variable costing. Lynch Company Variable Costing Income Statement