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 $$6$

Variable manufacturing overhead $$3$

Variable selling and administrative $$3$

Fixed costs per year:

Fixed manufacturing overhead $$276,000$

Fixed selling and administrative $$186,000$

During the year, the company produced $23,000$ units and sold $19,000$ units. The selling price of the company's product is $$50$ 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.

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