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 $ $$12$

Direct labor $$4$

Variable manufacturing overhead $$2$

Variable selling and administrative $$2$

Fixed costs per year:

Fixed manufacturing overhead $$370,000$

Fixed selling and administrative $$200,000$

During the year, the company produced $37,000$ units and sold $18,000$ units. The selling price of the company's product is $$55$ 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.