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

$$240,000$

$$70,000$

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 $$59$ 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 varlable costing and absorption costing net operating income in Year $1.$

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

Required $1A$

Required $1$B

Required $2A$

Required $2$B

Required $3$

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

Walsh Company

Income Statement

$\backslash$table$[[,$Year $1,$Year $2],[$les$,,]]$

Prex

$7$ of $8$

Next