Walsh Comp

Variable costs

Direct materials

Direct labor

Variable manufacturing overhead

Variable selling and administrative

Fixed costs per year:

Fixed manufacturing overhead

Fixed selling and administrative expenses $$,250,000$

$,80,000$

During its first year of operations, Walsh produced $50,000$ units and sold $40,000$ units. During its produced $40,000$ units and sold $50,000$ units. The selling price of the company's product is $$60$

Required:

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 $2.$

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 $2.$

Reconcile the difference between variable costing and absorption costing net opera

Complete this question by entering your answers in the tabs below.

Req $1A$

Req$2A$

Req$2B$

Req $3$

Assume the company uses variable costing. Compute the unit product cost for $Y$

Year $1$

Year $2$

Unit product cost