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 ($48 per unit) Cost of goods sold (533 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,056,000 $2,016,098 726,000 1,386,000 330,000 638,000 284,000 324,000 $ 46,000 $306,000 Additional Information a. Sales and production data for these first two years follow 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 42,900 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $33 per unit product cost consists of the following: Direct materials Direct labor Variable overhead Fixed overhead ($320,000/32,800 units) Total product cost per unit SS 8 10 10 $33 c. Selling and administrative expenses consist of the following 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 5 44,00 $ 84,000 240,000 240,000 $284,000 $324,000 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 sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption costing Income 2018 Variable conting income (0) 2019 Problem 06-1A Part 2 2. Prepare a table as in Exhibit 612 to convert variable costing income to absorption costing income for both 2018 and 2019. (Loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2018 Variable costing income (los) 2019 Absorption costing income (loss)