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Required information [ The following information applies to the questions displayed below. ] O'Brien Company manufactures and sells one product. The following information pertains to

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Required information
[The following information applies to the questions displayed below.]
O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first
three years of operations:
During its first year of operations, O'Brien produced 95,000 units and sold 72,000 units. During its second year of
operations, it produced 78,000 units and sold 96,000 units. In its third year, O'Brien produced 81,000 units and sold
76,000 units. The selling price of the company's product is $75 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.
b. Prepare an income statement for Year 1, Year 2, and Year 3.
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