Problem 6-1A (Static) 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 Year 2 Sales (546 per unit) $ 920,000 $ 1,840,000 Cost of goods sold (531 per unit) 620,000 1. 20,000 Gross profit 300,000 Selling and administrative expenses 170,000 220,000 Income 5 130,000 $ 380,000 Additional Information a. Sales and production data for these first two years follow. 600,000 Units Units produced Units sold Yeart 30,000 20,000 Year 2 30,000 40,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $31 per unit product cost using absorption costing consists of the following b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $31 per unit product cost using absorption costing consists of the following 55 Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) Total product cost per unit 2 10 $ 31 c. Selling and administrative expenses consist of the following Selling and Administrative Expenses Variable selling and administrative ($2.50 per unit sold) Fixed selling and administrative Total Year 1 550.000 120,000 $ 170,000 Year 2 $ 100,00 120,000 $ 220,000 Required: Prepare income statements for each of these two years under variable costing (Loss amounts should be entered with a minus sign.) DOWELL Company Income Statements (Variable Costing) Yeart Yoara Fixed setting and administrative Total 120.000 $ 170,000 120, $ 220,000 Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a mim DOWELL Compally Income Statements (Variable Costing) Year 1 Year 2 Income (Loss)