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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
Fixed selling and administrative
During 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 the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
Assume 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.
Required 1A
Requred 1B
Required 2A
Required 2B
Prepare an income statement for the year. Assume the company uses absorption costing.
\table[[Lynch Company],[Absorption Costing Income Statement],[Sales,$1,000,000
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