Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be cer to enter "0" wherever required.) Answer is complete but not entirely correct. Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Variable costing income Add: Fixed overhead in ending FG inventory 50,000 $ 115,440 Year 2 680,000 0

Required: Prepare a statement to convert variable costing income to absorption costing income for both years. (Leave no cells blank - be cer to enter "0" wherever required.) Answer is complete but not entirely correct. Dowell Company Convert Variable Costing Income to Absorption Costing Income Year 1 Variable costing income Add: Fixed overhead in ending FG inventory 50,000 $ 115,440 Year 2 680,000 0

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
See similar textbooks
icon
Related questions
Question

4 part 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 Direct materials Direct labor Variable overhead Year 1 $ 50,000 Year 2 52,000 64,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following. Fixed overhead ($500,000/50,000 units) Total product cost per unit Variable costing income Add: Fixed overhead in ending FG inventory Less: Fixed overhead in beginning FG inventory 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.) Answer is complete but not entirely correct. Dowell Company Convert Variable Costing Income Absorption Costing Income Year 1 $ $ $6 9 8 10 $33 50,000 115,440 x 0 165,440 $ $ Year 2 680,000 0 (115,440) X 564,560 X
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 Year 1 52,000 40,000 Direct materials Direct labor Variable overhead Year 1 $ 50,000 Year 2 52,000 64,000 b. The company's $33 per unit product cost (for both years) using absorption costing consists of the following. Fixed overhead ($500,000/50,000 units) Total product cost per unit Variable costing income Add: Fixed overhead in ending FG inventory Less: Fixed overhead in beginning FG inventory 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.) Answer is complete but not entirely correct. Dowell Company Convert Variable Costing Income Absorption Costing Income Year 1 $ $ $6 9 8 10 $33 50,000 115,440 x 0 165,440 $ $ Year 2 680,000 0 (115,440) X 564,560 X
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Quality control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS