5 Skipped Book Ask Print References Exercise 7-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2, LO7-3] 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 uniti Manufacturings Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per years Fixed manufacturing overhead Fixed selling and administrative expenses $ 23 $18 $3 $2 $ 240,000 $ 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 $58 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. Req 1A Req 18 Req 2A Req 20 Req 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Year 11 Year 2 Unit product cost A Req 18 >