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	$ 36,000	$ 540,000

Additional Information

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

Units	Year 1	Year 2
Units produced	36,600	36,600
Units sold	26,000	47,200

2. The companys $34 per unit product cost (for both years) using absorption costing consists of the following.

Direct materials	$ 6
Direct labor	10
Variable overhead	8
Fixed overhead ($360,000/36,000 units)	10
Total product cost per unit	$ 34

Required: Prepare a statement to convert variable costing income to absorption costing income for both years