Problem 19-1A (Algo) Variable costing Income statement for two consecutive years LO P2 Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Income Statements (Absorption Costing) Year 1 Sales ($59 per unit) Year 2 $ 1,652,000 $ 4,912, 990 Cost of goods sold (543 per unit) 1,204, eee 2,924,000 Gross profit 448,000 1,888,000 Selling and administrative expenses 314,000 434,000 Income $ 124,000 $ 654,000 Additional Information o. Soles and production data for these first two years follow, Unit Units produced Units sold Year 1 48,000 28,000 Year 2 40,000 58,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $43 per unit product cost using absorption costing consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($450,000/48,000 units) Total product cost per unit $ 11 18 4 20 5.43 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $43 per unit product cost using absorption costing consists of the following Direct materials Direct Labor Variable overhead Fixed overhead (3489,000/48,000 units) Total product cost per unit $ 11 18 4 ze $ 43 c. Selling and administrative expenses consist of the following Selling and Administrative Expenses Variable selling and administrative (83 per unit sold) Fixed selling and administrative Tot Year 1 $ 84,000 230,000 $ 314,000 Year 2 $ 204,000 230,000 3.434,000 Required: Prepare income statements for each of these two years under variable costing. (loss amounts should be entered with a minus sign.) Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Answer is not complete. DOWELL Company Income Statements (Variable Costing) Year 1 Year 2 Sales 1.652.000 4,012.000 Les Variable expenses Variable cost of goods sold Variable selling and administrative expenses Income (Los)