Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:

$\backslash$table$[[$Variable costs per unit:,,$],[$Manufacturing:$,$$$,12],[$Direct materials,$$,7],[$Direct labor,$$,2],[$Variable manufacturing overhead,$$,2],[$Variable selling and administrative,$$248,000,],[$Fixed costs per year:,$$158,000,],[$Fixed manufacturing overhead,,$],[$Fixed selling and administrative,,$]]$

During the year, the company produced $31,000$ units and sold $21,000$ units. The selling price of the company's product is $$44$ 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 $1$ A

Req $1$ B

Req $2A$

Req $2$B