Walsh Company manufactures and sells one product. The following information pertains to each of the companys first two years of operations:

I only need the answer where the X is:

I don't understand in Part 2(b) in the income statement why the Cost of goods sold for year 2 is wrong, can someone help me with the correct answer?

I don't understand in the income statement why the Cost of goods sold for year 2 is wrong, can someone help me with the correct answer?

2 value: 15.00 points 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 $ 25 $ 12 Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses 80,000 S 320,000 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 $55 per unit Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for year 1 and year 2. Answer is complete and correct. Year 1 Year 2 Unit product cost 39 b. Prepare an income statement for year 1 and year 2. Answer is complete and correct. Walsh Company Income Statement Year 1 Year 2 Sales 2,200,000 $ 2,750,000 Variable expenses Variable cost of goods sold Variable selling and administrative 1,560,000 1,950,000 40,000 50,000 Total variable expenses Contribution margin Fixed expenses 1,600,000 600,000 2,000,000 750,000 Fixed manufacturing overhead ixed selling and administrative 320,000 320,000 80,000 80,000 Total fixed expenses 400,000 400,000 Net operating income (loss) $ 200,000 350,000 2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answer to 2 decimal places.) Answer is complete and correct. Year 1 Year 2 Unit product cost 45.40$47.00 b. Prepare an income statement for year 1 and year 2. (Round your intermediate calculations to decimal places) Answer is complete but not entirely correct. Walsh Company Income Statement Year 1 Year 2 $ 2,200,000$ 2,750,000 Sales Cost of goods sold Gross margin 1,816,000 2.350.000 400,000 130,000 $ 264.000 $ 270,000 384.000 ling and administrative 120,000 Net operating income (loss)