View previous attempt Chec Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable 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 $ $320,000 $ 80,000 During its first year of operations, Walsh 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 $53 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. ADDING MIG company was a wauny, riepare IT LOLIGHT ICO GITU ICO Walsh Company View previous attempt Sales Variable expenses: Variable cost of goods sold Income Statement Variable selling and administrative Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead. Fixed selling and administrative expense Year 1 Year 2 $ 2,120,000 $ 2,650,000 1,920,000 2,400,000 120,000 150,000 2,040,000 2,550,000 80,000 100,000 320,000 320,000 320,000 320,000 $ (240,000) $ (220,000) Total fixed expenses Net operating income (loss) < 2. Assume the company uses absorption costing: View previous attempt 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. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Req 3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. (Round your answer to 2 decimal places.) Year 1 Year 2 Unit product cost < Req 1B Req 28 > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 28 Req 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round your intermediate calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Year 2 $ 2,120,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) $ 0 $ 0 < Req 2A Req 3 > < Prev 4 of 5 Next > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Red [3 View previous attempt ok t int ances 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: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing Absorption costing net operating income (loss) Year 1 Year 2 < Req 2B Req3>