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 31,000 units and sold 21,000 units. The selling price of the company's product is $44 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. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Ida Company produces a handcrafted musical instrument called a gatnelan that is similar to a xylophone. The gamelans are sold for $870. Selected data for the company's operations last year follow: The absorption costing income statement prepared by the company's accountant for last year appears below: Required: 1. Under absorption costing, how much fixed manufocturing overhead cost is included in the companys inventory at the end of last year? 2. Prepare an income statement for last year using variable costing