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

Walsh Company manufactures and sells one product. The following information pertains to each of the company's rst two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 26 Direct labor $ 15 Variable manufacturing overhead $ 5 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $400,000 Fixed selling and administrative expenses $ 90,000 ' During its rst 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 $57 per unit. 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 operating income in Year 1. 6 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Assume the company uses absorption costing. Compute the unit product cost for Year 1 and \\ decimal places.) 'e um o ques Ion Fixed costs per year: Fixed manufacturing overhead $400,000 Fixed selling and administrative expenses $ 90,000 I During its rst 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 $57 per unit. 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 operating income in Year 1. ' 9 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Assume the company uses absorption costing. Prepare an income statement for Year 1 and Yr calculations to 2 decimal places.) Selling and administrative Netoperating income (loss) $ (120,000) $ (70,000) 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. 9 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req iB Req 2A Req ZB Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses or deductions as a negative value.) Variable oosting net operating income (loss) 35 120,000 6 $ 70,000 0 Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing o 0 o 0 o Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing 0 50,000 0 50,000 0 Absorption costing net operating income (loss) $ 170,000 0 $ 120,000 0