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 $ 24 Direct labor $ 17 Variable manufacturing overhead $ 5 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 400,000 Fixed selling and administrative expenses $ 100,000 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 $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 Year1 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 Year1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req ZB Req 3 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. $ 2280000 $ 2,850,000 Cost of goods sold 2,160,000 2,800,000 Gross margin 120,000 Selling and administrative expenses Net operating income (loss) Complete this question by entering your answers in the tabs below. Req 1A Req lB Req 2A Req ZB Reconcile the difference between variable costing and absorption costing net operating income in Year 1. Note: Enter any losses or deductions as a negative value. Variable costing net operating income (loss) Add (deduct) xed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) Required information [The following information applies to the questions displayed below] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 200 170 190 Ending (units) 170 190 220 Variable costing net operating income $ 290,000 $ 269,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1' Calculate each year's absorption costing net operating income. Note: Enter any losses or deductions as a negative value. Add( (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Required information [The following information applies to the questions displayed below] Jorgansen Lighting, Incorporated, manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 200 170 190 Ending (units) 170 190 220 Variable costing net operating income $ 290,000 $ 269,000 $ 260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. 2. Assume in Year 4 that the company's variable costing net operating income was $250,000 and its absorption costing net operating income was $300,000. a. Did inventories increase or decrease during Year 4? b. How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4? Complete this question by entering your answers in the tabs below. Required a Required b Did inventories increase or decrease during Year 4? Required b > Complete this question by entering your answers in the tabs below. Required a Required b Required a How much nixed manufacturing overhead cost was deferred or released from inventory during Year 4? Fixed manufacturing overhead cost inventory during Year 4 Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $780,000, 46%, and $15,600, respectively. The North Division's contribution margin and contribution margin ratio are $140,000 and 50%, respectively. The South Division's segment margin is $90,000. The company has $140,400 of common xed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. Note: Round your percentage answers to 1 decimal place (Le .1234 should be entered as 12.3)