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

$$276,000$

$$186,000$

During the year, the company produced $23,000$ units and sold $19,000$ units. The selling price of the company's product is $$50$ per unit.

Required:

Assume that the company uses absorption costing:

a$.$ Compute the unit product cost.

b$.$ Prepare an income statement for the year.

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.

Req $1A$

Req $1$B

Req $2A$

Prepare an income statement for the year. Assume that the company uses absorption costing.

$\backslash$table$[[$Lynch Company$],[$Absorption Costing Income Statement,$],[,],[,],[,]]$