Help Save & Exit Sut eck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: 10 Variable costs per units Manufacturing: Direct materials Direct Inbor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $400.000 $ 70,000 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 $51 per unit Required: 1. Assume the company uses variable costing: k my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indi 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req 28 Req3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Reg 3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. decimal places.) Year 1 Year 2 Unit product cost $ 41.40 $ 43.00 Return to Reg 1A Reg 1B Reg 2A Req 2B Reg 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 Sales $ 2,040,000 2,550,000 Cost of goods sold 1,656,000 2,134,000 Gross margin 1,584,000 1,916,000 Selling and administrative expenses 130,000 140,000 Net operating income (los) $ 1,454,000 $ 1,776,000 my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate RE Reg 1A Reg 1B Reg 2A Reg 28 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.) Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead deferred in (released from inventory under absorption costing Absorption costing net operating income (loss) Year 1 Year 2 $ 1,300,000 $ 2,800,000 64,000 (64,000) $ 1,454,000 $ 1,776,000
