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Lynch Company manufactures and sells a single product. During its first year of operations, it incurred costs to produce 25,000 units but only sold 21,000 units. The selling price per unit is $47. The document asks to calculate the unit product cost and prepare income statements for the year under both absorption and variable costing assumptions.

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ynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $47 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. Compute the unit product cost. Assume that the company uses absorption costing. Prepare an income statement for the year. Assume that the company uses absorption costing. Compute the unit product cost. Assume that the company uses variable costing. Prepare an income statement for the year. Assume that the company uses variable costing.

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ynch Company manufactures and sells a single product- The following co.pdf

  • 1. ynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $47 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. Compute the unit product cost. Assume that the company uses absorption costing. Prepare an income statement for the year. Assume that the company uses absorption costing. Compute the unit product cost. Assume that the company uses variable costing. Prepare an income statement for the year. Assume that the company uses variable costing.