Welsh 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 waterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Hind sanufacturing overhead Fixed selling and administrative expenses 3 $ $ $ 21 13 2 1 5240.000 $te,00 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 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: 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 1 Red 10 Reg 2 R20 Rega Assume the company uses variable costing. Prepare an income statement for years and Year 2 Walsh Company Income statement Yoar 1 Year 2 S 4.400.000 3.520.000 Sales Variable expenses Variable cost of goods sold Variable selling and administrative Fixed seting and administrative experie sols 1.000.000 40,000 2.000.000 50.000 Total variable expenses Curibution 1.640.000 1.800.000 2.050.000 2,350,000 Fixed celing and administrative open Fredmanladuring ved Totalfoede Nel operating income OOO 10.000 240.000 300,000 80.000 240,000 300,000 5 2.050.000 1580.000 Reg 14 Reg 2 >