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 $$13$

Direct labor $ $ $5$

Variable manufacturing overhead $$1$

Variable selling and administrative $$1$

Fixed costs per year:

Fixed manufacturing overhead $$320,000$

Fixed selling and administrative $$230,000$

Durlng the year, the company produced $32,000$ unlts and sold $17,000$ unlts. The selling price of the company's product is $$53$ per unit.

Required:

Assume that the company uses absorption costing:

a$.$ Compute the unlt product cost.

b$.$ Prepare an Income statement for the year.

Assume that the company uses varlable 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 $1$A

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