Exercise 4-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2] 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 28,000 units and sold 24,000 units. The selling price of the company's product is $41 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. 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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Exercise 4-6 (Algo) Variable and Absorption Costing Unit Product Costs.docx
1. Exercise 4-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements
[LO4-1, LO4-2] 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 28,000 units and sold 24,000 units. The selling price of the company's product is $41
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. 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
![Exercise 4-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements
[LO4-1, LO4-2] 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 28,000 units and sold 24,000 units. The selling price of the company's product is $41
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. 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](https://image.slidesharecdn.com/exercise4-6algovariableandabsorptioncostingunitproductcosts-230221014135-c6c52157/85/Exercise-4-6-Algo-Variable-and-Absorption-Costing-Unit-Product-Costs-docx-1-320.jpg)
