unit product cost year 1 = $51

year 2 = $53

Wah Company mantectures and sell one product. The following information pertains to each of the company's first two years of operations $ 21 5 4 $ 400.000 70.000 Durooper Walsh produced 50.000 units and sold 40,000 units. During its second year of operations, produced 40,000 units and sold 50.000 The seling price of the company product your Intermediate calculations to 2 decimal places) Walsh Company Income Statement Your ! Year 2 $ 2,360,000 $ 2,950,000 Cost of goods sold (2,040,000) Gross margin 320,000 2,950,000 Selling and administrative expenses Net operating income (loss) $ 320,000 $ 2,950,000 Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2. Year 2 Year 1 10,000 $ $ 130,000 Vanable costing net operating income (oss) Add Fixed manufacturing overhead cost deferred in inventory under absorption costing Det Fored manufacturing overhead cost released from invertory under absorption costing Ahyarplion costing net operating income oss) S 10,000 $ 130,000