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 $38,000$ units and sold $18,000$ units. The selling

price of the company's product is $$61$ 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.

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