Return to question 4 Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: 1 points 02:58:57 Variable costs per unit: Manufacturing Direct materials Direct Labor Variable manufacturing overhead Variable selling and administrative Fixed costs per yeart Pixed manufacturing overhead Mixed selling and administrative expenses 25 15 5 2 $ $ 250,000 $ 80,000 During its first year of operations, Wolsh 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: 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 Bernncite the difference hetwaan variable coding and henntinn ostinn net oneration Income To Year 1 4 Return to question 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. 1 points Complete this question by entering your answers in the tabs below. 8 02:58:49 Req1A Reg 18 Reg 2A Reg 2B Reg 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round your calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Sales $ 2,400,000 Cost of goods sold 2,000,000 Gross margin 400,000 Selling and administrative expenses 250,000 Net operating income (loss) $ 150,000 Year 2 $ 3,000,000 2,562,500 437,500 80,000 $ 357,500