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 (531 per unit) Gross margin Selling and administrative expenses Net Income 2016 $92e, see $1,840,00 620.000 1.240.000 30,00 0,00 275,000 310,000 $ 25,000 $ 200,00 Additional Information a. Sales and production data for these first two years follow Units produced Units sold 30,00 20,00 30, 40,000
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 (5.300,000/30,000 units) Total product cost per unit c. Selling and administrative expenses consist of the following Variable selling and administrative expenses ($1.75 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 5275.000 110. 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. Get Accounting homework help today
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