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 289,500 334,500
Net income $40,500 $295,500
Additional Information
a. Sales and production data for these first two years follow.
2016 2017
Units produced 32,000 32,000
Units sold 22,000 42,000
b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $33 per unit product cost consists of the following.
Direct materials $6
Direct labor 9
Variable overhead 8
Fixed overhead ($320,000/32,000 units) 10
Total product cost per unit $33
c. Selling and administrative expenses consist of the following.
2016 2017
Variable selling and administrative expenses ($2.25 per unit) $49,500 $94,500
Fixed selling and administrative expenses 240,000 240,000
Total selling and administrative expenses $289,000 $334,500
Required:
1. Complete income statements for the company for each of its first two years under variable costing.
2. What are the differences between the absorption costing income and the variable costing income for these two years?

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting

If his parents cannot alex with college, and two of his scholarships will be awarded to other students if he does not accept them immediately, which is the best option for him?

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving