Practice: Walsh Company manufactures and sells, one product. The following, pertains to each of the company's first two years of Operations: Variable cost per unit: Manufacturing: Direct materials $29. Direct labor $13 Variable manufacturing over lead $4. Variable selling and administrative #3 Fixed cost, per year had $320,000 Fixed manutecturing over head #320,000 Fixed selling and administrative #100.000 expenses "During its first year of operations, Walsh produced 50,000 units and sold 20,000 units. During its second year of operations, it produced 46ooo whits and sold sooooo units. The selling price of the company's product is #53. per unit Bequired: 1. Assume the company uses yariables costing : a) Compute the unit product cost for year I and year ? u 1 - cost & Year the year 2 # 4 b) Prepare and an income statement for year 1 year 2. - Walsh Company, Income Statement Year 1 Year 2 Variable expenses Total variable expenses Fixed expenses Total fixed expenses. Closs Net operesting income Closs) # 2) Assume the company uses absorption, Casting: a Compute the whit product cost for year 1 and year 2. Round your answer to 2 decimal places.) Year 1 Year 2 unit Product Cost b) Prepare an income stalement for year 1 and Year 2 (Pound your intermediale calculations to a decimals places) Income statement Year 1 Year 2 Walsh Company Net sporading income. Lioss) 3) Reconcile the difference between variable costing and absorption costing net operestion income in year 1 and year 2. 1 Year 1 Year2 Dariable costing net oprating incomo los bsorption costing net operating income Loss