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Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 52,000 40,000 Year 1 $ 50,000 Year 2 52,000 64,000 Year 2 $ 680,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($500,000/50,000 units) Total product cost per unit $6 9 8 10 $ 33 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.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Year 2

Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 52,000 40,000 Year 1 $ 50,000 Year 2 52,000 64,000 Year 2 $ 680,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($500,000/50,000 units) Total product cost per unit $6 9 8 10 $ 33 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.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Year 2

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Direct materials Direct labor Variable overhead Year 1 $ 50,000 Year 1 52,000 40,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following. Year 2 52,000 64,000 Fixed overhead ($500,000/50,000 units) Total product cost per unit Variable costing income Absorption costing income Year 2 $ 680,000 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.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $6 9 8 10 $ 33 $ 50,000 $ Year 2 680,000
Transcribed Image Text:Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Direct materials Direct labor Variable overhead Year 1 $ 50,000 Year 1 52,000 40,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following. Year 2 52,000 64,000 Fixed overhead ($500,000/50,000 units) Total product cost per unit Variable costing income Absorption costing income Year 2 $ 680,000 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.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 $6 9 8 10 $ 33 $ 50,000 $ Year 2 680,000
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