3 Exercise 6-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2, LO6-3] 100 points Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variabl per unit: eBook Manufacturing Direct materials 20 Direct labor Variable manufacturing overhead 16 4 Fived cea and administrative Fixed manufacturing overhead Fixed selling and administrative expenses Hint $320,000 $100,000 Print 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. References 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