! Required information Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unit. Unit product cost b. Prepare an income statement for the year. $6 $9 $3 $4 Lynch Company $ 300,000 $ 190,000

Required information Lynch Company manufactures and sells a single product. The foliowing costs were incurred during the company's first year of operations: Durng the yeat, the company produced 25,000 units and sold 20,000 units. The seling price of the company's product is 550 per unit Recuired: Required: Asisulne that the company uses absorption costing a. Compuse the uni product cost. o. Prepore alt income starement for the yeat? During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the compary's produci is $50 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