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Exercise 6-6(Stotic) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] ...

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Accounting

Exercise 6-6(Stotic) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2]
Lymch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:Uuring the year, the company produced 25,000 units and sold 20,000 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.
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