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Lynch Company Costing and Income Statement Analysis

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Lynch Company manufactures a single product and incurred costs during its first year of operations where it produced 36,000 units but only sold 18,000 units. The document provides information needed to calculate unit product costs and prepare income statements under absorption and variable costing assumptions.

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Lynch 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 36,000 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 varlable 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. Compute the unit product cost. Assume that the company uses absorption costing. Prepare an income statement for the year. Assume that the company uses absorpt 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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Lynch Company Costing and Income Statement Analysis

  • 1. Lynch 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 36,000 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 varlable 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. Compute the unit product cost. Assume that the company uses absorption costing. Prepare an income statement for the year. Assume that the company uses absorpt 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