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 $($$$50$ per unit$)$ $ $1,350,000$ $ $2,550,000$

Cost of goods sold $($$$39$ per unit$)1,053,0001,989,000$

Gross profit $297,000561,000$

Selling and administrative expenses $247,000271,000$

Income $ $50,000$ $ $290,000$

Additional Information

Sales and production data for these first two years follow.

Units Year $1$ Year $2$

Units produced $39,00039,000$

Units sold $27,00051,000$

Variable costs per unit and fixed costs per year are unchanged during these years. The company's $$39$ per unit product cost using absorption costing consists of the following.

Direct materials $ $16$

Direct labor $9$

Variable overhead $5$

Fixed overhead $($$$351,000/39,000$ units$)9$

Total product cost per unit $ $39$

Selling and administrative expenses consist of the following.

Selling and Administrative Expenses Year $1$ Year $2$

Variable selling and administrative $($$$1$ per unit sold$)$ $ $27,000$ $ $51,000$

Fixed selling and administrative $220,000220,000$

Total $ $247,000$ $ $271,000$

Required:

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