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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: During the year, the company

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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:
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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