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1 Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: 0.66 points $
1 Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: 0.66 points $ $ Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 23 12 4 3 $ eBook $240,000 $ 80,000 Hint During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. Print Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. References Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req 2B Reg 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Year 1 Year 2 Unit product cost 1 a. Compute the unit product cost for year lang year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. 0.66 points Req 1A Req 1B Req 2A Req 2B Reg 3 eBook Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. CO Hint Walsh Company Income Statement Year 1 Year 2 Print References Net operating income (loss) 1 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. 0.66 points Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. eBook Hint Complete this question by entering Assessment Tool iFrame tabs below. Print Req 1A Req 1B Req 2A Req 2B Req 3 0 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. (Round your answer to 2 decimal places.) References Year 1 Year 2 Unit product cost 1 1 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. 0.66 points Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. eBook Hint Complete this question by entering your answers in the tabs below. Print Req 1A Req 1B Reg 2A Req 2B Req 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round your intermediate calculations to 2 decimal places.) References Walsh Company Income Statement Year 1 Year 2 Net operating income (loss) CI 1 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. 0.66 points Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. eBook 001 Hint Complete this question by entering your answers in the tabs below. Print Reg 1A Reg 1B Reg 2A Reg 2B Reg 3 . Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses or deductions as a negative value.) References Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income (loss) Req 2B Reg 3 >
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