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:$],[$Direct materials,$$,14],[$Direct labor,$$,3],[$Variable manufacturing overhead,$$,1],[$Variable selling and administrative,$$,1],[$Fixed costs per year:$],[$Fixed manuf$$cturing overhead,,$],[$Fixed selling and administrative,,$]]$

During the year, the company produced $29,000$ units and sold $22,000$ units. The selling price of the company's product is $$42$ 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$1A$

Req $1$ B

Req $2A$

Req $2$B

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

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