Sived Exercise 7-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2, LO7-3) 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 Direct labor Variable sanufacturing overhead Variable selling and adeinistrative Fixed costs per year Fixed sanufacturing overhead Fixed selling and adeinistrative expenses 26 11 1 $240,000 $1ee,ee0 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 $81 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 varable costing and obsorption costing net operating income in Year 1 nces Complete this question by entering your answers in the tabs below. Rea 2 Rad Rea 18 Rea 2A Rea 1A Noxt