7 Exercise 6-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements (L06-1, LO6-2, LO6-3) 2.5 points Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Skipped eBook Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Pixed manufacturing overhead Fixed selling and administrative expenses $ $ 5 $ 25 12 5 4 Hint $320,000 $ 70,000 Print References 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 $56 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. Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2A Reg 20 Reg 3 7. Tixed selling and administrative expenses $ 70,000 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 $56 per unit. 2.5 points Skipped 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. eBook Hint Complete this question by entering your answers in the tabs below. Print Reg 1A 10 Reg 2A Reg 28 Req3 Assume the company uses variable costing, Compute the unit product cost for year 1 and year 2 ol References Year 1 Year 2 Unit product out Reg18 > 7 Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Reg 28 Req3 2.5 points Skipped Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. Walsh Company Income Statement Year 1 Year 2 eBook Hint Print Hefetences Net operating income (los) 7 2.5 points 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 $56 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 Skipped etlook Complete this question by entering your answers in the tabs below. Hint Reg 1A Reg 1B Reg 2A Reg 28 Rog 3 Print Assume the company uses absorption costing, Compute the unit product cost for Year 1 and Year 2. (Round your answer to 2 decimal places.) References Year 1 Year 2 Unit product cost 7 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 $56 per unit. 2.5 points Skipped 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. eBook Complete this question by entering your answers in the tabs below. Hin Reg 1A Reg 1B Reg 2A Reg 28 Reg 3 Print Reconcile the difference between variable costing and absorption costing net operating Income In Year 1. (Enter any losses or deductions as a negative value) References Yeart Year 2 Variable coating net operating income (6) Add(deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income oss)