Can you, please, explain a difference between absorption cost and variable cost method for the example below and post Income statement formats for both methods.

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 $ 11

Variable manufacturing overhead $ 4

Variable selling and administrative $ 3

Fixed costs per year:

Fixed manufacturing overhead $ 240,000

Fixed selling and administrative expenses $ 100,000

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:

1. Assume the company uses variable costing:

a. Compute the unit product cost for year 1 and year 2.

b.

Show income statement for year 1 and year 2. - can you provide me with line item of the income statement and the calculations. please?

2.Assume the company uses absorption costing:

a.Compute the unit product cost for year 1 and year 2.(Round your answer to 2 decimal places.)

b.Show an income statement for year 1 and year 2.(Round your intermediate calculations to 2 decimal places)

3.Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2.