Saved Check my work mode: This shows what is correct or incorrect for the work you hav ariable costs per unit: Manufacturing: Direct materials Direct labor. Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 21 $ 13 $ 5 $ 4 $ 320,000 $ 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of opera produced 40,000 units and sold 50,000 units. The selling price of the company's product is $50 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. 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. Req 1A Req 18 Req 2A Req 28 Req 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) Stv Year 1 Year 2 $ (110,000) $ (40,000) O 48,000 48,000 $ (160,000) < Prev 606 Next 26