Lynch Company manufactures and sells a single product. The following costs were

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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 3020455 13 10 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $352,000 $262,808 During the year, the company produced 32,000 units and sold 27,000 units. The selling price of the company's product is $56 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost. b. Prepare an income statement for the year 2. 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 1A Req 1B Req 2A Req 2B Compute the unit product cost. Assume that the company uses absorption costing K Req 1A Req 1B >

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Solution for Question-1

Note: As per Chegg only First Question can be solved

Assume that the company uses absorption costing: Direct materials $13.00 Direct labor $10.00 Variable manufacturing overhead $3.00 Total variable costs $26.00 Fixed manufacturing overhead(352000 ÷32000 units $11.00 Absorption costing unit product cost $37.00

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