Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: $ $ 26 14 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 S3 $320,000 $ 60,000 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 $89 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 16 Reg 2A Reg 28 Req3 Assume the company uses variable costing. Compute the unit product cost for year 1 and year 2. Year 1 Year 2 Unit product cost $ 437 $ Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 2B Reg 3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2 Walsh Company Income Statement Year 1 Year 2 These were the options for the blanks on the left side of the income statement. I am confused on what I should be putting under the "variable selling and administrative" and under "fixed selling and administrative expense" Also confused on the "Year" 1 & "Year 2" numbers. Variable expenses Variable cost of goods sold Variable selling and administrative i 0 0 0 0 Total variable expenses Contribution margin Foed expenses Fored manufacturing overhead Fixed selling and administrative expense Accounts payable Accounts receivable Cash Fixed manufacturing overhead Fixed selling and administrative expense Sales Variable cost of goods sold Variable selling and administrative Total food expenses Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Req 2B Req3 Assume the company uses absorption costing. Compute the unit product cost for Year 1 and Year 2. (Round your intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Unit product cost Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Reg 2B Reg 3 Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. (Round your intermediate calculations to 2 decimal places.) Options for First & Second Blank Option for Third blank Options for Fourth blank Advertising Contribution Margin Advertising Walsh Company Beginning merchandise inventory Gross Margin Beginning merchandise inventory Commissions Commissions Income Statement Cost of goods sold Depreciation Depreciation Ending merchandise inventory Year 1 Year 2 Direct labor Fixed manufacturing overhead Direct materials Indirect labor Ending merchandise inventory Indirect materials First Blank .Fixed manufacturing overhead Purchases Fixed selling and administrative expenses Sales Second Blank Indirect labor Selling and administrative expenses Indirect materials Third Blank Variable cost of goods sold Manufacturing overhead Purchases Fourth Blank Sales Selling and administrative expenses Net operating income (oss) 0 n $ $ Variable manufacturing overhead Variable selling and administrative expenses Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses or deductions as a negative value. Round your intermediate calculations to 2 decimal places.) Year 1 Year 2 Variable costing net operating income (loss) Absorption costing net operating income (10%) Options for the two Blanks Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Add: Fixed manufacturing overhead cost released from inventory under absorption costing Deduct: Fixed manufacturing overhead cost deferred in inventory under absorption costing Deduct: Fixed manufacturing overhead cost released from inventory under absorption costing