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Lynch Company manufactures and sells a single product. The following costs were incurred during the...

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Accounting

Lynch 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 labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead $374,000
Fixed selling and administrative $284,000
During the year, the company produced 34,000 units and sold 26,000 units. The selling price of the company's product is $44 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
Compute the unit product cost. Assume that the company uses absorption costing.
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