Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Sales ($44 per unit) Cost of goods sold ($29 per unit) 2014 2015 $ 1056,000 $ 1,936,000 696,000 1.276,000 Gross margin Selling and administrative expenses 360,000 287,000 660,000 322,000 Net Income $ 73,000 $ 338,000 act Additional Information a Sales and production data for these first two years follow. co ing Units produced Units sold 2014 34,000 24,000 2015 34,000 44,000 finis! hanuf b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $29 per unit product cost consists of the following. incor Direct materials Direct labor Variable overhead Fixed overhead ($340,000/34.000 units) Total product cost per unit HAN $ 29 Hardeer 46,484 c. Selling and administrative expenses consist of the following Variable selling and administrative expenses ($175 per unit) Fixed selling and administrative expenses 2014 2015 $42.000 $ 77,000 245.000 245.000 Variab Total selling and administrative expenses $ 287,000 $322.000 Add(les deferre Absor 5. Required information value: 3.42 points 1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2014 2015 Net income (loss) value Required information 3.42 points 2. What are the differences between the absorption costing income and the variable costing income for these two years 7 (Loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2014 Variable costing income (loss) Absorption costing income (loss) References eBook & Resources Expanded table Learning Objective: 19-P2 Prepare and analyze an income statement using absorption costing and