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Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 $ 46,000 $ 640,000 Income Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced Units sold 47,600 36,000 47,600 59,200 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor 11 Variable overhead Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 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.)

Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 $ 46,000 $ 640,000 Income Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced Units sold 47,600 36,000 47,600 59,200 b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor 11 Variable overhead Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 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.)

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter21: Cost Behavior And Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...
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Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "O" wherever required.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Year 2 Variable costing income $ 46,000 $ 640,000 Absorption costing income
Transcribed Image Text:Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "O" wherever required.) Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Year 2 Variable costing income $ 46,000 $ 640,000 Absorption costing income
Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 Income $ 46,000 $ 640,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Year 1 Year 2 47,600 36,000 47,600 59,200 Units sold b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor Variable overhead 11 9 Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "O" wherever required.)
Transcribed Image Text:Problem 19-4AA (Algo) Converting variable costing income to absorption costing income LO A2 Dowell Company produces a single product. Its income under variable costing for its first two years of operation follow. Variable Costing Income Year 1 Year 2 Income $ 46,000 $ 640,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Year 1 Year 2 47,600 36,000 47,600 59,200 Units sold b. The company's $38 per unit product cost (for both years) using absorption costing consists of the following. Direct materials $ 8 Direct labor Variable overhead 11 9 Fixed overhead ($460,000/46,000 units) 10 Total product cost per unit $ 38 Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be certain to enter "O" wherever required.)
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