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

operations:

Variable costs per unit:

Manufacturing:

Direct materials $$11$

Direct labor $$4$

Variable manufacturing overhead $$1$

Variable selling and administrative $$1$

Fixed costs per year:

Fixed manufacturing overhead $$308,000$

Fixed selling and administrative $$218,$ eae

During the year, the company produced $28,000$ units and sold $24,000$ units. The selling price of the company"s product is $$41$ per unit.

Requlred:

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.