Year 1 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 2 Sales (562 per unit) $ 1,860,000 $ 4,464,000 cost of goods sold (549 per unit) 1,470,000 3,528,000 Gross profit 390,000 936,000 Selling and administrative expenses 275,000 317,000 Income $ 115,000 $ 619,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 51,000 30,000 Year 2 51,000 72,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $49 per unit product cost using absorption costing consists of the following Direct materials Direct labor Variable overhead $ 14 21 5 1 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $49 per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed averhead ($450,000751,000 units) Total product cost per unit $ 14 21 5 9 ints $ 49 eBook c. Selling and administrative expenses consist of the following. Print References Selling and Administrative Expenses Variable selling and administrative ($1 per unit sold) Fixed selling and administrative Total Yell $ 30,000 245,000 $ 275,000 Year 2 $ 72,000 245,000 5 317,000 Required: Prepare income statements for each of these two years under variable costing. (loss amounts should be entered with a minus sign.) 19 Homework Saved Help Savo & Exit Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus slgn.) a DOWELL Company Income Statements (Variable Conting) Your 1 Year 2 bok rences Income (Loss)