3 Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: bints eBook Hint Print References 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 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. 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. Req 1A Complete this question by entering your answers in the tabs below. Req 1B $ 24 $ 13 $5 $ 4 $ 320,000 $ 60,000 Req 2A Req 2B Req 3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Note: Enter any losses or deductions as a negative value. Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) $ Year 1 (180,000) $ Year 2 0

Walsh Company manufactures and sels one product. The following information pertains to each of the company's frrst two years of operations: 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 unas. The selling price of the company's product is $51 per unit. Aequired: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Vear 2. b. Prepare an income statement for Year 1 and Wear 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Your 2. b. Prepare an income statement for Year 1 and Year 2 . 3. Recencile the difference between variable cosing and absorpton costinglhet operating income in Yoar 1. Complete this aquestion by entering your answers in the tabs below. Feconcile the defference between variable costing and abserption costing net operating income in Year 1. Notei Enter any losses or deductions as a negative value. Wolsh Company manufactures and sels one product. The following information pertains to each of the conopanys fist two years of operations During is first year of operations, Wash produced 50,000 units and sold 40,000 units. During ats second year of operations, it produced 40.000 units and sold 50,000 units. The seling pice of the compony's product is $51 per unt. Pequilred: 1. Assume the company uses variable costing a. Compute the unt product cost for Year 1 and Year 2. b. Prepare an income statement for Year t and Yeat 2 2. Assume the corngany uses absorption costing a. Compute the unit product cost for Year 1 and Year 2 b. Prepare an income Mtotement for Year 1 and Year 2. 3. Peconcile the difference between variable costing and absorption costingirnet operating income in war: Complete this question by entering your answers in the tabs below. Heconcie bie dfference between variable costing and absorption coving net eperating inceme in vear 1 veten Enter any losses or deductions as a regabve valet