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 $ $24$

Direct labor $ $13$

Variable manufacturing overhead $ $4$

Variable selling and administrative $ $3$

Fixed costs per year:

Fixed manufacturing overhead $ $320,000$

Fixed selling and administrative expenses $ $90,000$

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$$s product is $$58$ 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 $1.$Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of

operations:

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 $$58$ per unit.

Required:

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 $2.$

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 $2.$

Reconcile the difference between variable costing and absorption costing net operating income in Year $1.$