See attached images Transcribed Image Text: b. Prepare an income statement for year 1 and year 2. Walsh Company Income Statement

Excerpt
sold 50,000 units. The selling price of the company’s product is $59 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for year 1 and year 2. Year 1 Year 2 Unit product cost $ 43 $ 43

See attached images Transcribed Image Text: b. Prepare an income statement for year 1 and year 2.
Walsh Company
Income Statement
Year 1
Year 2
Sales
Variable expenses
Total variable expenses
Fixed expenses
Total fixed expenses
$
%24
%24 Transcribed Image Text: Exercise 5-9 Variable and Absorption Costing Unit Product Costs and Income Statements [LO5-1, LO5-2, LO5-3]
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
26
$
$
11
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expenses
$ 240,000
$
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 $59 per unit.
Required:
1. Assume the company uses variable costing:
a. Compute the unit product cost for year 1 and year 2.
Year 1
Year 2
Unit product cost
$
43
$
43

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