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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 5 s 5 $ 21 17 2 1 5240,000 $ 60,000 During its first year of operations. Welsh 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 $88 per unit Required: 1. Assume the company uses variable costing: o 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: o. 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 1 Reg 10 Red 2A Req 25 Rig 3 Assume the company uses variable costing. Prepare an income statument for Year 1 and Year 2 Walsh Company income statement Year 1 Year 2 53.520.000 s4,400.000 Sales Variable Variable cost of goods sold Variable selling and administrative 3.520.000 4.400,000 Filmancung Tading and report Tops Net 0 53.520.000 400.000 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 $88 per unit Requtred: 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 and Year 2 2. Assume the company uses absorption conting: 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 1A Reg 10 Reg 2A Req 20 Req Assume the company uses absorption costing. Prepare an income statement for Year 1 and Year 2. Round your intermediate calculations to 2 decimal places. Year 2 Walth Company Income Statement Year 1 Sales Cost of goods sold Geomag Selling and administrative expenses Net operating income 5 os 0 During its first year of operations. Welsh 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 $83 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 coating and absorption costing net operating income in Year 1. Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Red 2A Rug 20 Rey Reconcile the difference between variable costing and absorption costing net operating income in Year Enter any los deduction a negative value. Round your termediate calculation to decimal) Year 1 Year 2 Variable costing net operating income foss) Mad Faxed manufacturing overhead cost defined in inventory under absorption conting Deducted manufacturing overhead contrased from inventory under abortioning Abortion sing net operating income on)