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

$\backslash$table$[[$Variable costs per unit:$],[$Manufacturing:$],[\backslash$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 $1$A

Req $1$B

Req $2$A

Req $2$B

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

$\backslash$table$[[$Lynchi Company$],[$Absorption Costing Income Statement,$],[,],[,],[,],[$