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Lynch company manufactures and sells a single product

01/05/2021 Client: muhammad11 Deadline: 2 Day

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: $6 Direct materials $9 Direct labor Variable manufacturing overhead $3 $4 Variab

During the year, the company produced 25,000 units and 20,000 sold company's product is $50 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 theyear.

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