Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.2014 2015Sales($46per unit) . $920,000 $1,840,000Cost of goods sold($31 per unit) $620,000 $1,240,000Gross margine 300,000 600,000Selling and administrative expenses 290,000 340,000Net income $ 10,000 $260,000Additional Informationa. Sales and production data for these first two years follow.. 2014 . 2015Units produced 30,000 . 30,000Units sold 20,000 40,000b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $31 per unit product cost consists of the following. Direct materials $5Direct labor 9Variable overhead 7Fixed overhead ($300,000/30,000units) 10Total product cost per unit.. $31c.2014 2015Variable selling and administration expenses $50,000 $100,000fixed selling and administration expenses 240,000 240,000Total selling and administration expenses 290,000 340,000Required1. Prepare income statements for the compony for each of its first two years under variable costing.2. Explain any difference between the absorption costing income and the variable costing income foe these two year

Flounder supply company, a newly formed corporation, incurred the following expenditures related to land, to buildings, and to machinery and equipment. abstract company’s fee for title search $1,066 architect’s fees 6,499 cash paid for land and dilapidated building thereon 178,350 removal of old building $41,000 less: salvage 11,275 29,725 interest on short-term loans during construction 15,170 excavation before construction for basement 38,950 machinery purchased (subject to 2% cash discount, which was not taken) 112,750 freight on machinery purchased 2,747 storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,469 new building constructed (building construction took 6 months from date of purchase of land and old building) 994,250 assessment by city for drainage project 3,280 hauling charges for delivery of machinery from storage to new building 1,271 installation of machinery 4,100 trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,070 instructions determine the amounts that should be debited to land, to buildings,and to machinery and equipment. assume the benefits of capitalizing interest during constructionexceed the cost of implementation. indicate how any costs notdebited to these accounts should be recorded.