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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 companys first year of operations:
Variable costs per unit:
Manufacturing:
Direct materials $ 14
Direct labor $ 3
Variable manufacturing overhead $ 1
Variable selling and administrative $ 1
Fixed costs per year:
Fixed manufacturing overhead $ 330,000
Fixed selling and administrative $ 240,000
During the year, the company produced 33,000 units and sold 24,000 units. The selling price of the companys product is $44 per unit.
Required:
Assume the company uses absorption costing:
Compute the unit product cost.
Prepare an income statement for the year.
Assume the company uses variable costing:
Compute the unit product cost.
Prepare an income statement for the year.

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