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Posted: July 2nd, 2022
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales (546 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2016 $920, 620.000 300,000 275,eee $ 25,00 2017 51,840,000 1.240,000 500,000 310.000 $ 290,000 Additional Information
a. Sales and production data for these first two years following. Units produced Units sold 2016 30,000 20,800 2017 3e.eee 48,00 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead (5300,000/30,000 units) Total product cost per unit c Selling and administrative expenses consist of the following $35.00 52.0 Variable selling and administrative expenses (51.75 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2. What are the differences between the absorption costing income and the variable costing income for these two years? Loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costa 2016 Variable costing income doss) Absorption costing income loss) Get Accounting homework help today
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