Required information 2. Problem 19-1A 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 ($44 per unit) Cost of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 5 2018 2019 $968,000 $1,848,000 638,000 1,218,000 330,000 630,000 294,500 339,500 $ 35,500 $ 290,500 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2018 2019 32,000 32,000 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 ..... turnover... Miami Bars and Nig... (96) Moneybagg Yo... TITLE Boxing Compl... V TITLE Weighted Glo... ti (13) Postings Han... Student T rk G Saved Help Inits coin 22 Required information 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 ($320,000/32,000 units) Total product cost per unit $ 5 9 5 10 $29 c. Selling and administrative expenses consist of the following Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2018 2019 $ 49,500 $ 94,500 245,000 245,000 $294,500 $339,500 Problem 19-1A Part 1 1. Prepare income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company 5 6 of 6 BE P W 1. Prepare income statements for the company for each of its first two years under variable costing (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2018 Sales 2019 $ 1,848,000 Direct materials Direct labor Variable overhead 110,000 Variable selling and administrative expenses 210,000 Total variable costs 110.000 210,000 Contribution margin Fixed selling and administrative costs Net income (loss) $ (53,500) $ 411,500