ALLL THE FILLED IN SPACES ARE CORRECT-- i am just having issues with req3

i dont understand what im doing wrong.

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 Fixed selling and administrative expenses $ $ $ S 22 12 5 4 $400,000 $ 60,000 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 $90 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 Reg 1A Req 1B Reg 2A Reg 28 Reg 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Year 1 Year 2 Unit product cost 39 $ 39 Req 1A Reg 1B Reg 2A Req 28 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 $ 3,600,000 $ 4,500,000 Sales Variable expenses: Variable cost of goods sold Variable selling and administrative 1,560,000 160,000 1,950,000 200,000 1,720,000 1,880,000 2,150,000 2,350,000 Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed seling and administrative expense 400,000 60,000 400,000 60,000 Total fixed expenses Net operating income (loss) 460,000 $ 1,420,000 $ 460,000 1,890,000 Reg LA Reg 18 Reg 2A Reg 28 Reg 3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. (Round your intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 49.00 Unit product cont 47.00 $ Req 2B Req3 Req 2A Req 1A Req 1B Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Ro calculations to 2 decimal places.) Year 2 Walsh Company Income Statement Year 1 $ 3,600,000 1,880,000 1,720,000 Sales Cost of goods sold Gross margin 4,500,000 2,430,000 2,070,000 Selling and administrative expenses Net operating income (loss) 220,000 260,000 $ 1,500,000 $ 1,810,000 Req 28 Reg 3 Reg 2A Reg LA Reg 18 Reconcile the difference between variable costing and absorption costing net operating Income in Year 1. (Enter any losses or deductions as a negative value. Round your intermediate calculations to 2 decimal places.) $ Year 1 Year 2 1,420,000 $ 1,890,000 0 Variable costing net operating income (loss) Add: Fixed manufacturing overhead cost deferred in Inventory under absorption costing Deduct: Fored manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income (los)