Dowell company produces a single po Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2018 2019 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income $920,000 $1,840,000 620,000 1,240,000 300,000 600,000 290,000 340,000 $ 10,000 $ 260,000 Additional Information a. Sales and production data for these first two years follow. 2018 2019 Units produced 30,000 30,000 Units sold 20,000 40,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) Total product cost per unit 10 $31 c. Selling and administrative expenses consist of the following. 2018 2019 Variable selling and administrative expenses ($2.50 per unit) $ 50,000 $100,000 Fixed selling and administrative expenses 240,000 240,000 Total selling and administrative expenses $290,000 $340,000 Required 1. Prepare income statements for the company for each of its first two years under variable costing. Check (1) 2018 net loss, $190,000) 2. Prepare a table as in Exhibit 19.12 to convert variable costing income to absorption costing income for both 2018 and 2019