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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 a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 44,300 33,000 Direct materials Direct labor Variable overhead Year 1 $ 43,000 Year 2 44,300 55,600 b. The company's $32 per unit product cost (for both years) using absorption costing consists of the following. Fixed overhead ($430,000/43,000 units) Total product cost per unit Year 2 $ 610,000 $6 9 7 10 $ 32 Required: 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 produces a single product. Its Income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 44,300 33,000 Direct materials Direct labor Variable overhead Year 1 $ 43,000 Year 2 44,300 55,600 b. The company's $32 per unit product cost (for both years) using absorption costing consists of the following. Fixed overhead ($430,000/43,000 units) Total product cost per unit Year 2 $ 610,000 $6 9 7 10 $ 32 Required: 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Units Units produced Units sold Additional Information a. Sales and production data for these first two years follow. Year 1 $ 43,000 Year 1 44,300 33,000 Direct materials Direct labor Variable overhead Fixed overhead ($430,000/43,000 units) Total product cost per unit Variable costing income Year 2 b. The company's $32 per unit product cost (for both years) using absorption costing consists of the following. Absorption costing income 44,300 55,600 Year 2 $ 610,000 Required: 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.) $6 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ 9 7 10 $32 43,000 $ Year 2 610,000
Transcribed Image Text:Dowell Company produces a single product. Its Income under variable costing for its first two years of operation follow. Variable Costing Income Income Units Units produced Units sold Additional Information a. Sales and production data for these first two years follow. Year 1 $ 43,000 Year 1 44,300 33,000 Direct materials Direct labor Variable overhead Fixed overhead ($430,000/43,000 units) Total product cost per unit Variable costing income Year 2 b. The company's $32 per unit product cost (for both years) using absorption costing consists of the following. Absorption costing income 44,300 55,600 Year 2 $ 610,000 Required: 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.) $6 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ 9 7 10 $32 43,000 $ Year 2 610,000
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