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

Direct labor

Variable manufacturing overhead

Variable selling and administrative

Fixed costs per year:

Fixed manufacturing overhead

Fixed selling and administrative

During the year, the company produced $25,000$ units and sold $20,000$ units. The selling price of the company's product is $$50$ 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.

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

Required $1A$

Requ$$red $1$B

Required $2A$

Required $2$B

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

$\backslash$table$[[$Lynch Company$],[$Absorption Costing Income Statement$],[$Sales$,$$$1,000,000$