Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3
[The following information applies to the questions
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.
|Sales ($46 per unit)||$||966,000||$||1,886,000|
|Cost of goods sold ($31 per unit)||651,000||1,271,000|
|Selling and administrative expenses||292,500||342,500|
|Fixed overhead ($310,000/31,000 units)||10|
|Total product cost per unit||$||31|
|Variable selling and administrative expenses ($2.5 per unit)||$||52,500||$||102,500|
|Fixed selling and administrative expenses||240,000||240,000|
|Total selling and administrative expenses||$||292,500||$||342,500|
Problem 19-1A Part 1
1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.)
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