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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 Year 1 $ 50,000 Additional Information a. Sales and production data for these first two years follow. Year 1 52,000 40,000 Year 2 52,000 64,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($500,000/50,000 units) Total product cost per unit Year 2 $ 680,000 Variable costing income $ $6 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Required: Prepare a statement to convert variable costing income to absorption costing income for both years Note: Leave no cells blank - be certain to enter "0" wherever required. 9 10 $33 50,000 $ 8 Year 2 680,000

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 Year 1 $ 50,000 Additional Information a. Sales and production data for these first two years follow. Year 1 52,000 40,000 Year 2 52,000 64,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($500,000/50,000 units) Total product cost per unit Year 2 $ 680,000 Variable costing income $ $6 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Required: Prepare a statement to convert variable costing income to absorption costing income for both years Note: Leave no cells blank - be certain to enter "0" wherever required. 9 10 $33 50,000 $ 8 Year 2 680,000

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 Year 1 $50,000 Additional Information a. Sales and production data for these first two years follow. Year 1 52,000 40,000 Direct materials Direct labor Variable overhead Fixed overhead ($500,000/50,000 units) Total product cost per unit Year 2 $ 680,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following Variable costing income Year 2 52,000 64,000 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ Required: Prepare a statement to convert variable costing income to absorption costing income for both years Note: Leave no cells blank - be certain to enter "0" wherever required. $6 9 10 $33 8 50,000 $ Year 2 680,000
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 Year 1 $50,000 Additional Information a. Sales and production data for these first two years follow. Year 1 52,000 40,000 Direct materials Direct labor Variable overhead Fixed overhead ($500,000/50,000 units) Total product cost per unit Year 2 $ 680,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following Variable costing income Year 2 52,000 64,000 Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $ Required: Prepare a statement to convert variable costing income to absorption costing income for both years Note: Leave no cells blank - be certain to enter "0" wherever required. $6 9 10 $33 8 50,000 $ Year 2 680,000
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