es 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 $ 25 $ 15 $ 5 $2 $ 250,000 $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 $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 net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req LA Req 18 Reg 2A Req 28 Reg 3 Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Req 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 $ 45 $ 45 Req 1A Req 18 > Req 1A Req 1B Req 2A Req 28 Req 3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Sales Variable expenses: Variable cost of goods sold Walsh Company Income Statement Year 1 Year 2 $ 2,400,000 $ 3,000,000) 1,800,000 2,250,000 80,000 100,000 Variable selling and administrative 1,880,000 2,350,000 Contribution margin 52000 650,000 Fixed expenses: Fixed manufacturing overhead 250,000 250,000 Fixed selling and administrative 80,000 80,000 Total fixed expenses 330,000 330,000 Net operating income (loss) $ 190,000 $ 320,000 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A, Req 2B Req 3 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 Unit product cost $ 50.00 $ 51.25 5. Reconcile une amerence between variable Cosung and absorption Cosung net operaung income in rear 1. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round your intermediate calculations to 2 decimal places.) Sales Cost of goods sold Walsh Company Income Statement Year 1 Year 2 $ 2,400,000 $3,000,000 Gross margin Selling and administrative expenses Net operating income (loss) 2,000,000 $ 0 $ Req 1A Req 1B Req 2A Req 2B Red 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.) Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 1 Year 2