search ebook Required: 1. Compute the unit product cost for one storage cabinet. 2. Prepare an income statement for the year. EXERCISE 8-7 Variable and Absorption Costing Unit Product Costs; Income Statements [LO1, LO2] Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: ariable costs per unt Manufacturing Direct labour... Variable selling and administrative Fwed manufacturing overhead.. Fxed costs per year ....200000 10000 During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $65 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. 2. Assume that the company uses variable costing. a. Compute the unit product cost. b. Prepare an income statement for the year. EXERCISE 8-8 Inferring Costing Method; Unit Product Cost [LO1, LO4] Exercise 8-8: Help Me Solve It Tutorial