TruMark Company produces and sells a single product, a child's toy popular in the 1960's. Select cost and operating data relating to the product for two years are given below: Selling price per unit $30 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $12 Direct labor $ 4 Variable manufacturing overhead $ 2 Fixed manufacturing overhead per year $80,000 Selling and Administrative expenses: $ 1.50 Variable selling and administrative expense per unit sold Fixed selling and administrative expenses $25,000 Year 1 Year 2 0 9,000 20,000 8,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory 11,000 17,000 9,000 0 1. Assume the company uses Variable Costing: a. Compute the unit product cost in each year. Show your work for partial credit purposes. b Prepare an income statement for each year. A partially completed template is provided for Your use. Please label appropriate rows which are missing. No data should be entered into the gray boxes. Year 1 Year 2 Sales $ $ Less: Variable Expenses: (enter label) Less: Fixed Expenses: $ $ = Net Operating Income 2. Now assume that the company uses Absorption Costing: Compute the unit product cost in each year. Show your work for partial credit purposes. C. d. Prepare an income statement for each year. A partially completed template is provided for your use. Please label appropriate rows which are missing. Year 1 Year 2 Sales $ $ Less: Cost of Goods Sold** (enter label) Less: Selling & Administrative Expenses (enter label) $ $ ** remember to consider any beginning inventory in Year 2 when doing this calculation