[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 | 2017 | |||||
Sales ($48 per unit) | $ | 1,056,000 | $ | 2,016,000 | ||
Cost of goods sold ($33 per unit) | 726,000 | 1,386,000 | ||||
Gross margin | 330,000 | 630,000 | ||||
Selling and administrative expenses | 300,000 | 350,000 | ||||
Net income | $ | 30,000 | $ | 280,000 | ||
Additional Information
2016 | 2017 | |||
Units produced | 32,000 | 32,000 | ||
Units sold | 22,000 | 42,000 | ||
Direct materials | $ | 6 | |
Direct labor | 9 | ||
Variable overhead | 8 | ||
Fixed overhead ($320,000/32,000 units) | 10 | ||
Total product cost per unit | $ | 33 | |
2016 | 2017 | |||||
Variable selling and administrative expenses ($2.5 per unit) | $ | 55,000 | $ | 105,000 | ||
Fixed selling and administrative expenses | 245,000 | 245,000 | ||||
Total selling and administrative expenses | $ | 300,000 | $ | 350,000 | ||
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.)
[The following information applies to the questions displayed below.] Dowell Company produces a single product. Its...
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 2017 Sales ($48 per unit) $ 1,056,000 $ 2,016,000 Cost of goods sold ($33 per unit) 726,000 1,386,000 Gross margin 330,000 630,000 Selling and administrative expenses 300,000 350,000 Net income $ 30,000 $ 280,000 Additional Information Sales and production data for these first two years follow. 2016 2017...
[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 2017 Sales ($48 per unit) $ 1,056,000 $ 2,016,000 Cost of goods sold ($33 per unit) 726,000 1,386,000 Gross margin 330,000 630,000 Selling and administrative expenses 300,000 350,000 Net income $ 30,000 $ 280,000 Additional Information Sales and production data for these first two years follow. 2016 2017 Units produced...
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. 2017 2016 $966,000 $1,886,000 651,000 1,271,000 315,000 292,250 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses 615,000 337,250 $ 22,750 277,750 Net income Additional Information a. Sales and production data for these first two years follow. 2017 31,000 31,000 21,000 41,000 2016...
Required information (The following information applies to the questions displayed below) Dowell Company produces a single product. It income statements under absorption costing for its first two years of operation follow 2018 2019 Sales ($44 per unit) $1,056,000 $1,936,000 Cost of goods sold ($29 per unit) 696,000 1,276,000 Gross margin 360,000 660,000 Selling and administrative expenses 299.000 344,000 Net Income 61,000 $ 316,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold...
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 2018 2019 Sales ($44 per unit) $1,056,000 $1,936.000 Cost of goods sold ($29 per unit 696,000 1,275,000 Gross margin 360,000 660,000 Selling and administrative expenses 299,000 344.000 Net income $ 61,000 $316,000 Additional information a. Sales and production data for these first two years follow Units produced Units sold...
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 Sales ($44 per unit) cout of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $880,000 $1,760,000 580,000 1,160,000 300,000 600,000 285,000 325,000 $ 15,000 $275,000 Additional Information a. Sales and production data for these first two years follow. Units produced 2018 30,000...
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 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $966,000 $1,886,000 651,000 1,271,000 315,000 615,000 292,250 337,250 $ 22,759 $ 277,750 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
Help Save & Exit 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 Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,688,000 $1,968,000 693,000 1,353,000 315,000 615,000 281,750 316,750 $ 33,250 $ 298,250 Additional Information o. Sales and production data for these first two years...
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. Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 2018 2019 $1,164,000 $2,064,000 759,000 1,419,000 345,000 645,000 297,500 347,500 $ 47,500 $ 297,500 Additional Information a. Sales and production data for these first two years follow. Units produced Units...
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. 2018 2019 Sales ($48 per unit) $ 1,152,000 $ 2,112,000 Cost of goods sold ($33 per unit) 792,000 1,452,000 Gross margin 360,000 660,000 Selling and administrative expenses 282,000 317,000 Net income $ 78,000 $ 343,000 Additional Information Sales and production data for these first two years follow. 2018 2019...