Walsh Company manufactures and sells one product. The following information 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 DA DA DA DA 21 15 3 2 $320,000 $ 60,000 During its first year of operations. Walsh produced 50,000 units and sold 40,000 UI produced 40.000 units and sold 50,000 units. The selling price of the company's p Required: 1. Assume the company uses variable costing: a Comoute 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 Land Year 2. Prepare an income statement for Year 1 and Year 2. 3. Reconcite the difference between variable costing and absorption costing net oper Answer is not complete. Complete this question by entering your answers in the tabs below. 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Regua Req 2B Reg 3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Ye decimal places Year 2 Unit product Cost 47 00 3$ Tie 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 Answer is not con Complete this question by entering your answers in the tabs be Req 1A Reg 1B Reo 2A Req 2B Req 3 Assume the company uses absorption costing. Prepare an income stater calculations to 2 decimal places) Walsh Company Income Statement Year 1 Year 2 Sales $ 12.280.000 S 2.850.000 Cost of goods sold 1.990 000 2.450 000 900 000 400 000 Gross margin Selling and administrative expenses Net operating income foss 340.000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reo PM Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any loss deductions as a negative value.) Year 1 Year 2 Variable costing net operating income doss) Add Fixed manufacturing overhead cost deferred in inventory under absorption costing 5 200 000 S 420.000 64 000 Absorption costing net operating income (loss (80.000) 340.000 324 000