ed Homework Exercise 7-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements (L07-1, L07-2) Lynch Company manufactures and sellis a single product. The following costs were incurred during the company's first year of operations: Variable costs per units Manufacturing Direct materials Direct labor S5 Variable manufacturing overhead Variable selling and administrative Tixed costs per year. Tixed manufacturing overhead $ 350,000 Fixed selling and administrative 260,000 During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the company's product is $46 per unit Required: 1. Assume that the company uses absorption costing: 3. Compute the unit product cost b. Prepare an income statement for the year 2. Assume that the company uses variable costing: . Compute the unit product cost b. Prepare an income statement for the year newers in the tabs below. 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 Reg 1B Reg 2A Reg 2B Compute the unit product cost. Assume that the company uses absorption costing. Unit product cost Reg 13 > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Req 2B Prepare an income statement for the year. Assume that the company uses absorption costing. Lynch Company Absorption Costing Income Statement $ 0 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 28 Compute the unit product cost. Assume that the company uses variable costing, Unit product cost Req 1A Req 18 Req 2A Req 2B Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement 0 0 $ 9 RO2A