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$ 10Direct labor$7$3Variable manufacturing overheadVariable selling and administrativeFixed costs per year:$3Fixed manufacturing overhead$ 380,000Pixed selling and administrative$ 290,000During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 per unit.Required:1. Assume that the company uses absorption costing:a. Compute the unit product cost.b. Prepare an income statement for the year.2. Assume that the company uses variable costing:a. Compute the unit product cost.Ab. Prepare an income statement for the year.Complete this question by entering your answers in the tabs below.Req 1AReg 28Reg 2AReq 18Compute the unit product cost. Assume that the company uses absorption costing.During the year, the company produced 38,000 units and sold 18,000 units. The selling price of thRequired:1. Assume that the company uses absorption costing:a. Compute the unit product cost.b. Prepare an income statement for the year.2. Assume that the company uses variable costing:a. Compute the unit product cost.b. Prepare an income statement for the year.Complete this question by entering your answers in the tabs below.Req 1AReq 18.Req 2AReq 2BPrepare an income statement for the year. Assume that the company uses absorption costing.Lynch CompanyAbsorption Costing Income Statement SavedHelpFixed costs per year:Fixed manufacturing overheadFixed selling and administrative$ 380,000$ 290,000During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 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 18Req 2AReq 28Compute the unit product cost. Assume that the company uses variable costing.Unit product cost< Req 18Req 2B >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 variable costing.Lynch CompanyVariable Costing Income Statement< Req 2AReg 23

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$ 10Direct labor$7$3Variable manufacturing overheadVariable s

Introduction:- Absorption costing consists all costs of manufacturing as product costs irrespective…

Business

Accounting

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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An example of qualitative data is 1.product price 2.production cos 3.product features 4.prime cost
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