Variable Costing IncomeYear 1Year 2Income$ 44,000$ 620,000

Additional Information

1. Sales and production data for these first two years follow.

UnitsYear 1Year 2Units produced45,40045,400Units sold34,00056,800

1. The company's $26 per unit product cost (for both years) using absorption costing consists of the following.

Direct materials$ 4Direct labor7Variable overhead5Fixed overhead ($440,000/44,000 units)10Total product cost per unit$ 26

Required:

Prepare a statement to convert variable costing income to absorption costing income for both years.(Leave no cells blank - be certain to enter "0" wherever required.)