Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year ofoperations:Variable costs per unit:Manufacturing:Direct materials$4$14Direct labor3Variable manufacturing overheadVariable selling and administrativeFixed costs per year:Fixed manufacturing overheadFixed selling and administrative12$1$330,000$240,000During the year, the company produced 33,000 units and sold 24,000 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.Req 1AReq 1BReg 2AReq 2BCompute the unit product cost. Assume that the company uses variable costingUnit product cost< Req 1BReq 2B >

Name: Lynch Company manufactures and sells a single product. The following
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Description: Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year ofoperations:Variable costs per unit:Manufacturing:Direct materials$4$14Direct labor3Variable manufacturing overheadVariable sel

Note: As question specified to solve Question 2 so SME has solved both part of question 2 namely 2A…

Answered: 2. Assume that the company uses…

Business

Accounting

2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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