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 units and sold units. The selling price of the company's product is $ 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
Compute the unit product cost. Assume that the company uses absorption costing.
