Required:Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certainto enter "O" wherever required.)Dowell CompanyConvert Variable Costing Income to Absorption Costing IncomeYear 1Year 2Variable costing income$46,000$640,000Absorption costing income Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow.Variable Costing IncomeYear 1Year 2Income$ 46,000$ 640,000Additional Informationa. Sales and production data for these first two years follow.UnitsUnits producedYear 1Year 247,60036,00047,60059,200Units soldb. The company's $38 per unit product cost (for both years) using absorption costing consists of the following.Direct materials$ 8Direct laborVariable overhead119Fixed overhead ($460,000/46,000 units)10Total product cost per unit$ 38Required:Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certainto enter "O" wherever required.)

Lets understand the basis. There are two type of costing system are followed by the entity which…

Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 $ 46,000 $ 640,000 Income Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced Units sold 47,600 36,000 47,600 59,200 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor 11 Variable overhead Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 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.)

Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 $ 46,000 $ 640,000 Income Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced Units sold 47,600 36,000 47,600 59,200 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor 11 Variable overhead Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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