Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 310 per unit 110,000 urits 113.750 units Sales price per unit Units produced this vear Units sold this year Units in beginning-year inventory Beginring inventory costs Variable (3,750 units x $140) Fixed (3,750 units x $75) 3750 urits 525,000 281.250 806,250 Total Manufacturig costs this year 4 per unit 68 per unit Direct materials Direct labor Overhead costs this year Variable overhead $3,600,000 $7000,000 Fixed overhead Selling and administrative costs this vear Variable Fixed $1.500,000 14 400 000 1. Prepare the current-year income statement for the company using variable osting OAK MART COMPANY Variable Costing Inoome Statement 35282 500 Sas Less Vaable costs Seginning inventory Vaable costs s 525.000 Manacturing cos his yean 500.000 Direct maneria 7.200000 Diret labor 1000000 Varable oveead cot 10445 000 Total variable costs avalable Less Ending fnished goods inventory 18.445.000e Vaable cost of goods soid Varabe seing and adminiatratie 1500,000 Total variable coas available Toal varable costs 17.945.000 Contrbuton margin 14.317000 Less Fed expenses Fed overhead costs 281 250 la750000C Fod seling and adminitrative costs Varable ovemead ocsts T fad prss 11031 250 Net income doss 2. Prepare the current year income statement for the company using absorption costing. ololo ololololoolooololooolo OAK MART COMPANY Absorption Costing ineome Statement Beginning invenory Marufacturing costs this year Net inoome (oss) Fed costs added sosubraced from inventory