Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P4 [The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statement under absorption costing for its first two years of operation follow. 2012 2013 Sales ($46 per unit) Cost of goods sold ($31 per unit) $ 966,000 $ 1,886,000 651,000 1,271,000 Gross margin Selling and administrative expenses 315,000 287,000 615,000 327,000 Net income $ 28,000 $ 288,000 Additional Information a. Sales and production data for these first two years follow. 2013 Units produced Units sold 2012 31,000 31,000 21,000 41,000 b. Variable cost per unit and total fixed costs are unchanged during 2012 and 2013. The company's $31 per unit product cost consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($310,000/31,000 units) 8 7 10 Total product cost per unit $ 31