Problem 06-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 (The following information applies to the questions displayed below) Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Sales (544 par unit) Cost of goods sold ($29 per unit) Gross margin Selling and administrative expenses Het income 2018 2019 5968,000 $1,348,000 638,000 1,218,000 330,000 630,000 289,000 329,000 $ 41,000 $301,000 Additional Information a. Sales and production data for these first two years follow units produced units solo 2010 2019 32,000 $2,000 22,000 42,000 . Vanable cost per unit and totalfixed costs are unchanged during 2018 and 2019. The company's $29 per unit product cost consists of the following Units sold 22,000 42,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $29 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead (5320,000/32,000 units) Total product cost per unit S4 8 7 10 $29 ences c. Selling and administrative expenses consist of the following Variable selling and administrative expenses (52 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2018 2019 $ 44,000 5 84,098 245,000 245,000 $289,000 $329,800 Problem 06-1A Part 2 2. Prepare a table as in Exhibit 612 to convert variable costing income to absorption costing income for both 2018 and 2019 (Loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Vatlablo Costing Income to Absorption Costing Income 2018 Variable costing Income (loso) 2019 Absorption costing Income (lass)