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$ 27

Direct labor$ 16

Variable manufacturing overhead$6

Variable selling and administrative$5

Fixed costs per year:

Fixed manufacturing overhead$320,000

Fixed selling and administrative expenses$80,000

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 $52 per unit.

Required:1.Assume the company uses variable costing:

a.Compute the unit product cost for year 1 and year 2.i HAVE THIS ANSWER IT IS $49 FOR YEAR 1&2

b.Prepare an income statement for year 1 and year 2. THE FULL STATEMENT (SO LOST ON THIS)

(especially need to know how to calculate the sales amounts....what do I use to get the sales values)

(Also, how to arrive at the amounts for Fixed manufacturing overhead and Fixed selling and administrative expense) 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.)

(HOW TO CALCULATE THIS)

b.CREATE an income statement for year 1 and year 2.(Round your intermediate calculations to 2 decimal places)

YEAR 1 YEAR 2

SALES 2,216,000 ?

COST OF GOODS

GROSS MARGIN

SELLING AND ADMINISTRATIVE EXPENSES

NET OPERATING INCOME (LOSS) 3.Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2.

VARIABLE COSTING NET OPERATING INCOME (LOSS) ( YEAR 1) 2,216,000

ADD: FIXED MANUFACTURING OVERHEAD

COST DEFERRED IN INVENTORY UNDER ABSORPTION COSTING (YEAR 1) 64,000

DEDUCT: FIXED MANUFACTURING OVERHEAD INCOME (LOSS)

THIS IS DUE TONIGHT REALLY NEED HELP!!!!!!