Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: $ $ Variable costa per uniti Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year. Fixed manufacturing overhead Fixed selling and administrative expenses 22 11 3 2 $ $320,000 $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 $86 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. Reg 1B Reg 1A Reg 2A Req3 Reg 28 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 Assume the company uses variable costing. Compute the unit product cost for year 1 and yea Year 1 Year 2 Unit product cost Req 1B> Reg 1A Req 1B Req 2A Req 2B Req 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 Net operating income (loss) Req 1B Reg 1A Req 2A Reg 3 Req 2B Assume the company uses absorption costing. Compute the unit product cost for Year 1 a calculations and final answers to 2 decimal places.) Year 1 Year 2 Unit product cost Req 1A Req3 Req 2A Req 1B Req 2B Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Year 2 Net operating income (loss) 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 tbs below. Req 1A Reg 1B Req 2A Reg 28 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 (loss)