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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required:
Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain
to enter "O" wherever required.)
Dowell Company
Convert Variable Costing Income to Absorption Costing Income
Year 1
Year 2
Variable costing income
$
46,000
$
640,000
Absorption costing income
Transcribed Image Text:Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "O" wherever required.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Year 2 Variable costing income $ 46,000 $ 640,000 Absorption costing income
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
Income
$ 46,000
$ 640,000
Additional Information
a. Sales and production data for these first two years follow.
Units
Units produced
Year 1
Year 2
47,600
36,000
47,600
59,200
Units sold
b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following.
Direct materials
$ 8
Direct labor
Variable overhead
11
9
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 "O" wherever required.)
Transcribed Image Text: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 Income $ 46,000 $ 640,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Year 1 Year 2 47,600 36,000 47,600 59,200 Units sold b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor Variable overhead 11 9 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 "O" wherever required.)
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