Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.

Income Statements (Absorption Costing)	Year 1	Year 2
Sales ($53 per unit)	$ 1,113,000	$ 3,339,000
Cost of goods sold ($38 per unit)	798,000	2,394,000
Gross profit	315,000	945,000
Selling and administrative expenses	282,000	366,000
Income	$ 33,000	$ 579,000

Additional Information

1. Sales and production data for these first two years follow.

Units	Year 1	Year 2
Units produced	42,000	42,000
Units sold	21,000	63,000

2. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $38 per unit product cost using absorption costing consists of the following.

Direct materials	$ 12
Direct labor	12
Variable overhead	6
Fixed overhead ($336,000/42,000 units)	8
Total product cost per unit	$ 38

3. Selling and administrative expenses consist of the following.

Selling and Administrative Expenses	Year 1	Year 2
Variable selling and administrative ($2 per unit sold)	$ 42,000	$ 126,000
Fixed selling and administrative	240,000	240,000
Total	$ 282,000	$ 366,000

Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.)