$ 15 Walsh Company manufactures and sells one product. The following Information pertains to each of the company's first two years of operations Variable conta per unit: Manufacturing Direct materials $ 25 Direct labor Variable manufacturing overhead $ 5 Variable selling and administrative $ 2 Fixed costs per year Fixed manufacturing overhead $ 250,000 Pixed selling and administrative expenses $ 80,000 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 $60 per unit. 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 Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Rea ZA Reg 20 R3 Req 1A Req 1B Req 2A Req 2B Req3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Walsh Company Income Statement Year 1 Year 2 +1 0 0 0 0 0 Net operating income (loss) $ 0 $ Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Req3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 ar decimal places.) Year 1 Year 2 Unit product cost . .. . 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 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 1 Req3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Year 2 0 $ 0 Net operating income (loss)