4 0:54:52 Walsh Company manufactures and sells one product. The following information pertains to each of the comp operations: 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 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. During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second yea produced 40,000 units and sold 50,000 units. The selling price of the company's product is $60 per unit. 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 Req 2A Year 1 $ 25 $ 15 $5 $ 2 $ 250,000 $ 80,000 Req 2B Year 2 Req 3 Assume the company uses variable costing. Compute the unit product cost for Year 1 and Year 2.

Walsh Company manufactures and sells one product. The following information pertains to each of the comp operations: During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second ye 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 nct operating income in Year 1. Complete this question by entering your answers in the tabs below. Assume the company uses variable costing. Compute the unit product cost for Year 1 and Year 2