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

$\backslash$table$[[$Variable costs per unit:,,$],[$Manufacturing:$,$$$,12],[,$ Direct materials,$$,6],[$Direct labor,$$,3],[$Variable manufacturing overhead,$$,3],[$Variable selling and administrative,$$,276,000],[$Fixed costs per year:,$$,186,000],[$Fixed manufacturing overhead,$$,]]$

During the year, the company produced $23,000$ units and sold $19,000$ units. The selling price of the company's product is $$50$ 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 $1B$

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

$\backslash$table$[[$Lynch Company,$],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,],[,,]]$

Req $2B$n