Walsh Company manufactures and sells one product. The following Information pertains to each of the company's first two years of operations: 22 12 Variable conta per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Pixed costs per years 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, produced 40,000 units and sold 50,000 units. The seling price of the company's product is $59 per unlt. 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