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 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
Requred B
Required
Required B
Prepare an income statement for the year. Assume the company uses absorption costing.
tableLynch CompanyAbsorption Costing Income StatementSales$
