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Walsh Company manufactures and sells one product. The following information pertains to each of the companys first two years of operations:

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. Requlred: 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2 . Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. Note: Round your answer to 2 decimal places. Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. Note: Round your intermediate calculations to 2 decimal places. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Note: Enter any losses or deductions as a negative value