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

Additional Information

a$.$ Sales and production data for these first two years follow.

b$.$ Variable costs per unit and fixed costs per year are unchanged during these years. The company's $$31$ per unit product cost

using absorption costing consists of the following.

c$.$ Selling and administrative expenses consist of the following.

Required:

Prepare income statements for each of these two years under variable costing.

Note: Loss amounts should be entered with a minus sign.