Nequired inlforr Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 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 $1,058,000 $1,978,80e 713,000 1,331,000 645,000 2016 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses 345,000 302,500 352,s00 42,500 292,se Net income Additional Information a. Sales and production data for these first two years follow 2017 33,000 23,e00 43,000 2016 Units produced Units sold 33,000 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 saterials Direct labor Variable overhead Fixed overhead ($330,000/33,00 units) Total product cost per unit c. Selling and administrative expenses consist of the following 2016 2012 s 52,s00 $8,s00 245,000 245,000 $3,500 $353,500 Variable selling and adeinistrative expeeses $2.5perit) Fixed selling and adeinistrative epenses Tot al selling and adeitstrative expeeses Problem 19-1A Part 2 2. What are the differences between the absorption costing income and the vanable costing income for these two years? (Loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2017 2016 Variable costing income (oss Absorption costing income (loss)