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

Name: Dowell Company produces a single product. Its income under variable c
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Description: Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow.**Variable Costing Income**- **Year 1:** $43,000- **Year 2:** $610,000**Additional Information****a.** Sales and production data

Absorption Costing Method is a method of costing in which product cost is calculated by adding…

Business

Accounting

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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