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 $ 11 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 30,000 units and sold 23,000 units. the selling price of the company’s product is $43 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.
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Lynch company manufactures and sells a single product. the following costs were incurred during the...
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