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UNIT PRODUCT COST IS 20!Exercise 7-6(Algo) Variable and Absorption Costing Unit Product Costs and Income...

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Accounting

UNIT PRODUCT COST IS 20!Exercise 7-6(Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1,
LO7-2]
Lynch 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 38,000 units and sold 18,000 units. The selling price of the company's product is $61 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.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Prepare an income statement for the year. Assume the company uses variable costing
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