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 materialsDirect laborVariable manufacturing overheadVariable selling and administrativeFixed costs per year:Fixed manufacturing overheadFixed selling and administrative2424241111$330,000$240,000During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit.Required:1. Assume that the company uses absorption costing:a. Compute the unit product cost.b. Prepare an income statement for the year.2. Assume that the company uses variable costing:a. Compute the unit product cost.b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below.Req 1AReq 1BReq 2AReq 2BPrepare an income statement for the year. Assume that the company uses absorption costing.Lynch CompanyAbsorption Costing Income Statement$Req 1AReq 2A>

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 materialsDirect laborVariable manufacturing overheadVariable selling a

Cost refers to the expenditure incurred by the firm as a consideration for goods or services.

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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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative %24 %24 24 11 3 1 1 $330,000 $240,000 During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit. Required:

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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative %24 %24 24 11 3 1 1 $330,000 $240,000 During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit. Required:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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