Exercise 7-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, L07-2, LO7-3] 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 $ $ $ $ 29 14 6 5 $240, eee $ 80, een 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 $89 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. 6. 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. Reg 1A Reg 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 Walsh Company Income Statement Year 1 Year 2 0 0 0 0 0 0 0 Net operating income (loss) S s 0 Walsh Company Income Statement Year 1 Year 2 Net operating income (loss) Year 1 Year 2 Unit product cost Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income (loss)