?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 manufacturing overhead $
? Variable selling and administrative $
Fixed costs per year:
? Fixed manufacturing overhead $
? Fixed selling and administrative expenses $
During its first year of operations, Walsh produced ?units and sold ?units. During its second year of operations, it produced ?units and sold ?units. The selling price of the company's product is $ ?per unit.
Required:
?Assume the company uses variable costing:
a ?Compute the unit product cost for Year ?and Year
b ?Prepare an income statement for Year ?and Year
?Assume the company uses absorption costing:
a ?Compute the unit product cost for Year ?and Year
b ?Prepare an income statement for Year ?and Year
?Reconcile the difference between variable costing and absorption costing net operating income in Year
