$ 21 $ 14 $ 2 $1 Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed 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 $59 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 Reg 2A Reg 28 Reg 3 Year 2 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Yoar 1 Unt product cost ROMA Req 18 > d. compue me url proUUCI COST TOP eat and real 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 in Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Red 2A Req 2B Reg 3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Walsh Company Income Statement Year 1 Year 2 tes Sales Variable expenses Variable cost of goods sold Variable selling and administrative Total variable expenses 0 0 0 Variable expenses 0 Net operating income (loss) $ OS 0 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 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 28 Reg 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.) Walsh Company Income Statement Year 2 Year 1 os 0 Req 2A Req 3 > Advertising Beginning merchandise inventory Commissions Depreciation equired: Assume the company uses variable costing: Compute the unit product cost for Year 1 and Year 2 Prepare an income statement for Year 1 and Year 2 Assume the company uses absorption costing: Compute the unit product cost for Year 1 and Year 2 Prepare an income statement for Year 1 and Year 2 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 18 Reg 2A Reg 28 Req3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses or deductions as a negative value.) Year 1 Year 2 Variable costing net operating income (oss) Add (deduct) fed manufacturing overhead deferred in released from) inventory under absorption costing Absorption conting net operating income (oss)
