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

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:
Varlable costs per unit:
Manufacturing:
Direct materials
Direct labor
$11
Varlable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative
$330,600
$240,600
During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 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 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
Req 1B
Req 26
Compute the unit product cost. Assume that the company uses absorption costing.
Unit product cost
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