XYZ 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 Labour Variable Manufacturing overhead ..... Variable Selling and Administrative ..... Fixed costs per year: Fixed manufacturing overhead .... Fixed selling and administrative expenses $ a. Compute the unit product cost. b. Prepare an Income Statement for the year. 25 12 3 5 200,000 110,000 (5 marks) (7 marks) During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product $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. $14.300 13,100 (5 marks) (7 marks) Con

XYZ Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product $65 per unit. Required: 1. Assume that the company uses absorption costing. a. Compute the unit product cost. (5 marks) b. Prepare an Income Statement for the year. (7 marks) 2. Assume that the company uses variable costing. a. Compute the unit product cost. (5 marks) b. Prepare an Income Statement for the year. (7 marks)