OBrien Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations:

During its first year of operations, OBrien produced 94,000 units and sold 78,000 units. During its second year of operations, it produced 77,000 units and sold 88,000 units. In its third year, OBrien produced 85,000 units and sold 80,000 units. The selling price of the companys product is $72 per unit.

Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.)

b. Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.)

Inner Secret T Shirt Company produces and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: 27 17 Direct material:s Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $540,000 $160,000 During its first year of operations, O'Brien produced 94.000 units and sold 78,000 units. During its second year of operations, it produced 77000 units and sold 88,000 units. In its third year O'Brien produced 85,000 units and sold 80,000 units. The selling price of the company's product is $72 per unit