4 LO6-3] 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 ateriats Direct labor Variable manufacturing overhead We selling and administrative Fland costs per year: Fired manufacturing overhead FEweling and administrative expenses $ $ 13 6 5 $400,000 $100,000 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 $55 per unit. Required: 1 Assume the company uses variable costing: Compute the unit product cost for Year 1 and Year 2 t Prepare an income statement for Year 1 and Year 2 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 3. Reconcle 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 3 Req 1A Req 18 Reg 2A Reg 2B Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Walsh Company Income Statement Year 1 Year 2 Sales Variable expenses Variable cost of goods sold Variable selling and administrative 0 0 0 Foxed manutacturing overhoad Fixed selling and administrative expense Total fixed expenses Net operating income (loss) 0 0 $ 0 S 0 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 $55 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 ce Complete this question by entering your answers in the tabs below. Reg 1 Reg 10 Reg 2 Reg 20 Red Assume the company uses absorption costing, Compute the unit product cost for Year 1 and Year 2. (Round your answer to 2 decimal places) Year 1 Year 2 Unt product cost 4 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. Rogla Rea 10 Reg 2 Reg 28 Red 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 1 Year 2 Cost of goods sold Gross margin Selling and administrative expenses Nyt operating income foss) $ 0$ 0 Gew 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 $55 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 16 Reg 2A Reg 28 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) Yeart Year 2 Variable costing net operating income (loss) Ade Faced manufacturing overhead cost defined in inventory under absorption costing Add Femanufacturing overhead contrased from inventory under absorption costing Alstorption costing net operating income (los)