Fantastic29 Company manufactures and sells a single product. The following costs were incurred during the company's first year ofoperations:Direct materials: $12 per unit- Direct labor: $ 4 per unit- Manufacturing overhead costs:Variable: $2 per unit•Fixed: $370,000- Selling and administrative costs:Variable: $2 per unitFixed: $ 200,000During the year, the company produced 37,000 units and sold 18,000 units. The selling price of the company's product is $55 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.

Income Statement-Companies follow marginal and absorption costing methods in the internal reporting…

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: à. Compute the unit product cost. . Prepare an income statement for the year.

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: à. Compute the unit product cost. . Prepare an income statement for the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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