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 $91,000$ units and sold $70,000$ units. During its second year of

operations, it produced $79,000$ units and sold $95,000$ units. In its third year, O'Brien produced $82,000$ units and sold

$77,000$ units. The selling price of the company's product is $$76$ per unit.

Assume the company uses variable 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 $3.$