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 $25,000$ units and sold $21,000$ units. The selling price of the company's product is $$47$ 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.

Answer is not complete.

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

Req $1A$

Req $1$B

Req $2A$

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