Walsh Company manufactures and sells one product. The following information pertains to each of the company$$s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ $22$ Direct labor $ $14$ Variable manufacturing overhead $ $5$ Variable selling and administrative $ $4$ Fixed costs per year: Fixed manufacturing overhead $ $400,000$ Fixed selling and administrative expenses $ $70,000$ During its first year of operations, Walsh produced $50,000$ units and sold $40,000$ units. During its second year of operations, it produced $40,000$ units and sold $50,000$ units. The selling price of the company$$s product is $$54$ per unit. Required: Assume the company uses variable costing: Compute the unit product cost for Year $1$ and Year $2.$ Prepare an income statement for Year $1$ and Year $2.$ Assume the company uses absorption costing: Compute the unit product cost for Year $1$ and Year $2.$ Prepare an income statement for Year $1$ and Year $2.$ Reconcile the difference between variable costing and absorption costing net operating income in Year $1$Walsh Company manufactures and sells one product. The following information pertains to each of the company$$s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ $22$ Direct labor $ $14$ Variable manufacturing overhead $ $5$ Variable selling and administrative $ $4$ Fixed costs per year: Fixed manufacturing overhead $ $400,000$ Fixed selling and administrative expenses $ $70,000$ 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$$s product is $$54$ per unit. Required: Assume the company uses variable costing: Compute the unit product cost for Year $1$ and Year $2.$ Prepare an income statement for Year $1$ and Year $2.$ Assume the company uses absorption costing: Compute the unit product cost for Year $1$ and Year $2.$ Prepare an income statement for Year $1$ and Year $2.$ Reconcile the difference between variable costing and absorption costing net operating income in Year $1$