Exercise 7-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, L07-2) Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable contes per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Tixed selling and administrative $ $ $ 12 7 2 2 $248.000 $ 158,000 During the year, the company produced 31,000 units and sold 21,000 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. Complete this question by entering your answers in the tabs below. 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 Reg 1B Reg 2A Reg 28 Compute the unit product cost. Assume that the company uses absorption costing. Unit product cost Raq 10 2 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. 1.66 points eBook Complete this question by entering your answers in the tabs below. Hint Print Req 1A Reg 1B Reg 2A Reg 28 References Prepare an income statement for the year. Assume that the company uses absorption costing Lynch Company Absorption Costing Income Statement VIRY Mycos, MELIHy pivuu CU SIVU HLOHU JUU UUU UL. Have TY PILE UI UE LUI Pony PIUULLIDETU. 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. ok Complete this question by entering your answers in the tabs below. onces Req 1A Reg 1B Reg 2 Reg 28 Compute the unit product cost. Assume that the company uses variable costing. Unt productos ( Reqt0 Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Prepare an income statement for the year. Assume that the company uses variable costing, Lynch Company Variable Costing Income Statement