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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year or operations: table [ [ Variable

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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year or operations:
\table[[Variable costs per unit:],[Manufacturing:],[\table[[Direct materials],[Direct labor]],$,3],[Variable nanufacturing overhead,$,1],[Variable selling and administrative,$,1],[Fixed costs per year:],[Fixed manufacturing overhead,,680],[Fixed selling and adninistrative,,800]]
During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit.
Required:
Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
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.
Req 1A
Req 1B
Req 2A
Req 2B
Prepare an income statement for the year. Assume that the company uses absorption costing.
\table[[Lynchi Company],[Absorption Costing Income Statement,],[,],[,],[,],[
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