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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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