Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 32,000 units and sold 27,000 units. The selling price of the company's product is $56 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Advertising Beginning merchandise inventory Commissions Cost of goods sold Depreciation Endina merchandise inventorv Fixed manufacturing overhead Indirect labor Indirect materials Purchases Sales Total selling and administrative expens 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Advertising Beginning merchandise inventory Commissions Depreciation Ending merchandise inventory Fixed manufacturing overhead Fixed selling and administrative expense Indirect labor Indirect materials Purchases Sales Selling and administrative expenses Variable cost of goods sold Variable selling and administrative expense