Exercise 7-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2, 07-3) 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: Manuf acturing: Directmaterials $29 Direct labor ariable manuf acturing overhead Variable sel ling and administrat ive Fixed costs per year Fixed manuf acturing overhead Fixed sel ling and administrat ive expenses $320,000 $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 $83 per unit. Required 1. Assume the company uses variable costing b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costingg 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 Answer is not complete. Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2A Req 2B Req 3