Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of

operations:

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:

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 operating income in Year $1$ and Year $2.$ Answer is not complete.

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

$\backslash$table$[[$Req$1$A$,$Req$1$B$,$Req $2$A $,$ Req $2$B$]]$

Assume the company uses absorption costing. Prepare an income statement for Year $1$ and Year $2.$

Note: Round your intermediate calculations to $2$ decimal places.

$\backslash$table$[[$Walsh Company$],[$Income Statement$],[,,$Year $1,$Year $2],[$Sales$,$V$,$$$2,200,000,$$$2,750,000],[$Cost of goods sold,O$,1,936,000,2,484,000],[$Gross margin,O$,264,000,266,000],[$Selling and administrative expenses,V$,144,000\backslash$times $,180,000\backslash$times $],[$Net operating income $($loss$),,$$$,120,000,86,000]]$ Complete this question by entering your answers in the tabs below.

Reconcile the difference between variable costing and absorption costing net operating income in Year $1$ and Year $2.$

Note: Enter any losses or deductions as a negative value.