Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information Year 1 $ 33,000 Year 2 $510,000 a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 33,300 23,000 Year 2 33,300 43,600 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($330,000/33,000 units) Total product cost per unit Required: $ 7 11 10 10 $ 38 Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.) Dowell Company

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow.
Variable Costing Income
Income
Additional Information
Year 1
$ 33,000
Year 2
$510,000
a. Sales and production data for these first two years follow.
Units
Units produced
Units sold
Year 1
33,300
23,000
Year 2
33,300
43,600
b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following.
Direct materials
Direct labor
Variable overhead
Fixed overhead ($330,000/33,000 units)
Total product cost per unit
Required:
$ 7
11
10
10
$ 38
Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain
to enter "O" wherever required.)
Dowell Company
Convert Variable Costing Income to Absorption Costing Income
Year 1
Year 2
Variable costing income
$
33,000 $
510,000
Absorption costing income
Transcribed Image Text:es Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information Year 1 $ 33,000 Year 2 $510,000 a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 33,300 23,000 Year 2 33,300 43,600 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($330,000/33,000 units) Total product cost per unit Required: $ 7 11 10 10 $ 38 Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "O" wherever required.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Year 2 Variable costing income $ 33,000 $ 510,000 Absorption costing income
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