Required Information 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 ($44 per unit) Cost of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $968,000 $1,848,800 638,900 1,218,eee 33e, eee 630, eee 289, eee 329, eee $ 41,000 $ 381, e8e Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2018 32,eee 22,000 2019 32,600 42,eee 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 ($320,080/32,898 units) Total product cost per unit $5 8 6 10 $29 c. Selling and administrative expenses consist of the following. Variable selling and administrative expenses ($2 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2018 2019 $ 44,800 $ 84,000 245, eee 245,980 $289,eee $329, eee Problem 06-1A Part 2 2. Prepare a table as in Exhibit 6.12 to convert variable costing income to absorption costing income for both 2018 and 2019. (Loss amounts should be entered with a minus slgn.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2018 2019 Variable costing income (loss) Absorption costing income (loss)