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

Variable Costing Income	Year 1	Year 2
Income	$ 48,000	$ 660,000

Additional Information

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

Units	Year 1	Year 2
Units produced	49,800	49,800
Units sold	38,000	61,600

2. The companys $28 per unit product cost (for both years) using absorption costing consists of the following.

Direct materials	$ 4
Direct labor	8
Variable overhead	6
Fixed overhead ($480,000/48,000 units)	10
Total product cost per unit	$ 28

Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "0" wherever required.)

Dowell Company
Convert Variable Costing Income to Absorption Costing Income
	Year 1	Year 2
Variable costing income	$48,000	$660,000
Absorption costing income