### Lynch Company Manufacturing Cost and Income Statement Analysis**Overview:**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 Costs:** - Direct materials: $14 - Direct labor: $3 - Variable manufacturing overhead: $1- **Variable Selling and Administrative Costs:** - $1#### Fixed Costs per Year:- Fixed manufacturing overhead: $330,000- Fixed selling and administrative: $240,000**Production and Sales Data:**- Units produced: 33,000- Units sold: 24,000- Selling price per unit: $44### Required Analysis:1. **Using Absorption Costing:** - Compute the unit product cost. - Prepare an income statement for the year.2. **Using Variable Costing:** - Compute the unit product cost. - Prepare an income statement for the year.#### Input Section:To compute the above required analyses, enter your answers in the tabs provided below.**Prepare an Income Statement for the Year (Assuming Variable Costing):**Lynch Company Variable Costing Income Statement | Sales | ||---------------|--------------------------------|| Variable Expenses: | || - Variable Manufacturing Costs | || - Variable Selling and Administrative Costs | || Contribution Margin | || Fixed Expenses: | || - Fixed Manufacturing Overhead | || - Fixed Selling and Administrative Costs | || Net Income | |The above table needs to be populated based on the provided data and methodologies outlined.**Navigation:**- Use the "Prev" and "Next" buttons to navigate through the sections, located at the bottom of the interface (pages 6 of 9).---**Graph/Diagram Explanation:**This example contains an incomplete table to be filled in by students. Students need to calculate variable and fixed costs, unit costs, and net income both using absorption costing and variable costing methods and prepare relevant income statements.

Name: ### Lynch Company Manufacturing Cost and Income Statement Analysis**O
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Description: ### Lynch Company Manufacturing Cost and Income Statement Analysis**Overview:**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:- **Ma

Income statement is the financial statement prepared for knowing the profitability position of a…

Business

Accounting

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 $ 14 $3 $1 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: $1 Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During 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.

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 $ 14 $3 $1 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: $1 Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During 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.

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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