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 $ $$290,000$

Fixed selling and administrative $$200,000$

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 $1A$

Compute the unit product cost. Assume that the company uses absorption costing.

Unit product cost

Req $1A$

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

Req $1A$

Req $1$ B

Req $2A$

Req $2$ B

Compute the unit product cost. Assume that the company uses variable costing

Unit product cost

Req $1A$

Req $1B$

Req $2A$

Req $2B$

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