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 $ 10
direct labor $ 4
variable manufacturing overhead $ 2
variable selling and administrative $ 2
fixed costs per year:
fixed manufacturing overhead $ 374,000
fixed selling and administrative $ 284,000
during the year, the company produced 34,000 units and sold 26,000 units. the selling price of the company’s product is $44 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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