Question 6

Lynch Company manufactures and sells a single product Tho following costs were incured during the compary's fint year of operations: During the yeaf, the company produced 22,000 units and sold 18,000 units. The selling price of the company's product is $45 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. 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. Complete this question by entering your answers in the tabs below. Compute the unit product cost. Assume that the company uses absorption costing. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year. Assume that the company uses absorption costing. Complete this question by entering your answers in the tabs below. Compute the unit product cost. Assume that the company uses variable costing Prepare an income statement for the year. Assume that the company uses variable costing