Please give me the answers and detailed solution EXERCISE $6-9$ Variable and Absorption Costing Unit Product Costs and Income Statements

$[$LO$6-1,$ LO$6-2,$ LO$6-3]$

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 $.............$ $$250,000$

Fixed selling and administrative expenses $.....$ $$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 $$60$ per unit.

Required:

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 $2.$

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 $2.$

Explain the difference between variable costing and absorption costing net operating income in Year

Also, explain why the two net operating income figures differ in Year $2.$ EXERCISE $6-12$ Variable Costing Income Statement; Reconciliation $[$LO$6-2,$ LO$6-3]$

Whitman Company has just completed its first year of operations. The company's absorption costing

income statement for the year appears below:

The company's selling and administrative expenses consist of $$210,000$ per year in fixed expenses and $$2$

per unit sold in variable expenses. The $$16$ per unit product cost given above is computed as follows:

Direct materials

Direct labor

Variable manufacturing overhead

Fixed manufacturing overhead units$)$

Absorption costing unit product cost

Absorption costing unit product cost

Required:

Redo the company's income statement in the contribution format using variable costing.

Reconcile any difference between the net operating income on your variable costing income statement

and the net operating income on the absorption costing income statement above.