Problem $19-1$A $($Algo$)$ Varlable costing Income statement for two consecutlve years LO P$2$

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

Additional Information

a$.$ Soles and production dato for these first two years follow.

$\backslash$table$[[$Units$,$Year $1,$Year $2],[$Units produced,$50,000,50,000],[$Units sold,$29,000,71,000]]$

b$.$ Variable costs per unit and fixed costs per year are unchanged during these years. The company's $$47$ per unit product cost using obsorption costing consists of the following.

Direct materials

Direct labor

Variable overhead

Fixed overhead $($ $$400,\frac{000}{50},000$ units$)$

lotsl product cost per unit

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

Selling and Adninistrative Expenses Variable felling and administrative $($$$2$ per unit sold$)$ Fixed selling and sdministrstive

$1$otal

Required:

Prepore income ststements for eoch of these two yesrs under voribble costing. $($Loss amounts should be entered with a minus sign.$)$

$\backslash$table$[[$DOWELL Company$],[,$Income statemente $($Varlable costing$),],[,,$Year $1,$Year $2],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[$I$,,,],[$I$.,,,],[,,,],[,,,],[$Weone Latsi,T$7,,]]$