Variable Costing Income Statements Assignment | Top Universities

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow 2016 2817 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses $920,eee $1,840,eee 620,000 1,240,000 300,e00 275,000 $ 25,000 600,ee0 310,00 29e,eee Net income Additional Information

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a. Sales and production data for these first two years follow 2016 2017 Units produced Units sold 30,eee 30,eee 28,e00 40,ee0 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017 The company's $31 per u cost consists of the following. unit product Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) 8 10 $31 Total product cost per unit c Selling and administrative expenses consist of the following. 2016 2817 $ 35,000 7e,000 Variable selling and administrative expenses ($1.75 per unit) 240,000 240,00 Fixed selling and administrative expenses $275,080 5310,000 Total selling and administrative expenses 1. Complete income statements for the company for each of its first two years under variable costing (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2017 2016. Get Accounting homework help today

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