Please put answers in a chart as shown, Help Se Required information (The follow

Question

Please put answers in a chart as shown, Help Se Required information (The following information applies to the questions displayed below] Dowell Company produces a single product Its income statements under absorption costing for its first two years of operation follow 2016 017 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin selling and administrative expenses Net income $966,e00 $1,886,800 651,000 1,271,800 615,000 292,508342,580 22,5e0 272,50 315,000 Additional Information a. Sales and production data for these first two years follow e16 2017 Units produced Units sold 21,000 41,000 Prex9 10 of 11 Next

Explanation / Answer

Variable costing Income Statement: 2016 2017 Sales revenue 966000 1886000 Less: Variable cost Direct Material 105000 205000 Direct Labour 168000 328000 Variable manufacturing OH 168000 328000 Variable Selling OH 52500 102500 Total Variable cost 493500 963500 Contribution margin 472500 922500 Less: Fixed cost Fixed mnaufacturing OH 310000 310000 Fixed Selling expense 240000 240000 Total fixed cost -77500 372500 Re conciliation Statement 2016 2017 Income as per Variable costing -77500 372500 Add: Fixed Manufacturing Cost deferred 100000 (10000 units @10) Less: Fixed Manufacturing cost released -100000 Income as per Absorption costing' 22500 272500

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