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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of

operations:

Variable costs per unit:

Manufacturing:

Direct materials $$13$

Direct labor $$7$

Variable manufacturing overhead $$1$

Variable selling and administrative $$1$

Fixed costs per year:

Fixed manufacturing overhead $$288,000$

Fixed selling and administrative $$198,000$

During the year, the company produced $24,000$ units and sold $20,000$ units. The selling price of the company's product is $$48$ per unit.

Required:

Assume the company uses absorption costing:

a$.$ Compute the unit product cost.

b$.$ Prepare an income statement for the year.

Assume the company uses variable costing:

a$.$ Compute the unit product cost.

b$.$ Prepare an income statement for the year.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

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