2. Assume that the company uses variable costing

a) compute the unit product cost

b) prepare an income statement for the year

Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ 30 Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense 331,200 261,000 During the year, the company produced 36,800 units and sold 29,000 units. The selling price of the company's product is $82 per unit. Required: 1. Assume that the company uses absorption costing, a. Compute the unit product cost. Unit product cost $ 61 b. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Absorption Costing Income Statement Sales $ 2,378,000 Cost of goods sold: Beginning inventory Less: Cost of goods manufactured 2,378,000 Less: Ending inventory Gross margin Selling and administrative expenses Operating loss $ 2,378,000 2. Assume that the company uses variable costing