Exercise 6-9 (Static) Variable and Absorption Costing Unit Product Costs and Income Statements (L06-1, L06-2, L06-3) 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 materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses $ $ 5 2 $ 250,000 $ 30,000 During its first year of operations. Walsh produced 50.000 units and sold 40,000 units. During 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 and Year 2 VV Walsh Company Income Statement Year 1 Year 2 Sales Variable expenses Variable cost of goods sold Variable selling and administrative 0 0 0 0 S S 0 Net operating income (loss) Reg 2A Reg 1A Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Roh 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.) Walsh Company Income Statement Year 1 Year 2 Net operating Income (loss) $ 0$ Complete this question by entering your answers in the tabs below. Reg 1B Req 1A Req 2A Reg 2B 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.) Year 1 Year 2 320,000 $ 190,000 $ Variable costing net operating income (loss) Add. Fixed manufacturing overhead cost released from inventory under absorption costing Add Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income 50.000 240,000 $ 50,000 270.000 $