can you please show me what i did wrong on red areas

Exercise 5-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO5-1, LO5-2, LO5-3] Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: 29 18 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 $ 400.000 $ 50,000 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. Answer is complete and correct. Unit product Year 1 Year 2 52s 52 cost b. Prepare an income statement for year 1 and year 2. Answer is complete but not entirely correct. Walsh Company Income Statement Year 1 Year 2 $ Sales 2,320,000 $ 2,900,000 Variable expenses Variable cost of goods sold 2,080,000 2,600,000 Variable selling and administrative 160,000 200,000 2,240,000 80,000 2,800,000 100,000 Total variable expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense 400,000 400,000 50,000 50,000 Total fixed expenses Net operating income 450,000 $ (370,000) 450,000 $ (350,000) 2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answers to 2 decimal places.) Answer is complete and correct. Year 1 Year 2 Unit product cost $ 60.00 $ 62.00 b. Prepare an income statement for year 1 and year 2. (Round your intermediate calculations to 2 decimal places) Answer is not complete. Walsh Company Income Statement Year 1 Year 2 Sales $ 2,320,000 $ 2,900,000 Cost of goods sold 2,400,000 620,000 Gross margin (80,000) 2,280,000 Selling and administrative 3,000,000 expenses Net operating income (loss) $ 2,280,000 (3,080,000) 3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2. Answer is complete but not entirely correct. Variable costing net operating income (Loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income (loss) Year 1 Year 2 $ 3,030,000 $ 2,280,000 50,000 50,000 $ 3,080,000 $ 2,230,000