Walsh Company manufactures and sels one product. The following information pertains to each of the company's first two years of operations: $ 16 $4 Variable costs per unit: Manufacturing Direct materials $ 27 Direct labor Variable manufacturing overhead Variable selling and administrative $3 Fixed costs per yeart Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 80.ee 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 $59 per unit. Required: 1. Assume the company uses variable casting: 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2 Reg 28 Req3 Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2 Walsh Company Income Statement Year 1 Year 2 0 o o 0 o Q 5 Net operating income foss) CRG SA Assume the company uses absorption decimal places.) Year 1 Year 2 Unit product cost calculations to 2 decimal places.) Walsh Company Income Statement + Year 1 Year 2 0 $ 0 Net operating income (loss) Reg 1A Reg 1B Req 2A Reg 28 Reg 3 Reconcile the difference between variable costing and absorption costing net operating Income In Year 1. (Enter any losses or deductions as a negative value.) Year 1 Year 2 Variable costing net operating income (1088) Add (deduct) fixed manufacturing overhead deferred in (roleased from) Inventory Absorption conting net operating income (los) Heg 20