Walsh Company manufactures and sells one product. The following information pert 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 $ 27 $ 12 $ 5 $ 4 $ 240,000 $ 100,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units produced 40,000 units and sold 50,000 units. The selling price of the company's pro 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 opera