Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
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 | |||
| Units produced | 34,000 | 34,000 | ||
| Units sold | 24,000 | 44,000 | ||
- Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $33 per unit product cost consists of the following.
| Direct materials | $ | 5 | |
| Direct labor | 8 | ||
| Variable overhead | 10 | ||
| Fixed overhead ($340,000/34,000 units) | 10 | ||
| Total product cost per unit | $ | 33 | |
- Selling and administrative expenses consist of the following.
| 2018 | 2019 | |||||
| Variable selling and administrative expenses ($1.75 per unit) | $ | 42,000 | $ | 77,000 | ||
| Fixed selling and administrative expenses | 240,000 | 240,000 | ||||
| Total selling and administrative expenses | $ | 282,000 | $ | 317,000 | ||
Prepare income statements for the company for each of its first two years under variable costing.
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Required information
[The following information applies to the questions
displayed below.]
Dowell Company produces a single...
Required information (The following information applies to the questions displayed below. Dowell Company produces a single...
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...
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...
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...
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...
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...
Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...
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...
[The following information applies to the questions displayed below.] Dowell Company produces a single product. Its...
[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...
[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...
Dowell company produces a single po Dowell Company produces a single product. Its income statements under...
Dowell company produces a single po Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.20182019Sales ($46 per unit)$920,000$1,840,000Cost of goods sold ($31 per unit)620,0001,240,000Gross margin300,000600,000Selling and administrative expenses290,000340,000Net income$10,000$260,000Additional Information a. Sales and production data for these first two years follow. 20182019Units produced30,00030,000Units sold20,00040,000b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials$5Direct labor9Variable...
Dowell Company produces a single product. Its income statements under absorption costing for its first two...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 20162017 $1,152,000 $2,112,000 Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 92,000 1,452,000 360,000 660,000 305,000 355,000 $55,000 305,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016-1120171 34,000 34,000 24,000 44,000 b. Variable cost per unit and total fixed...
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 ($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. 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 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.
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...
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...
[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...
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 20162017 $1,152,000 $2,112,000 Sales ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses Net income 92,000 1,452,000 360,000 660,000 305,000 355,000 $55,000 305,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016-1120171 34,000 34,000 24,000 44,000 b. Variable cost per unit and total fixed...
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