Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ Units produced this year Units sold this year 320 per unit 100,000 units 103,500 units 3,500 units Units in beginning-year inventory Beginning inventory costs $ 455,000 Variable (3,500 units x $130) Fixed (3,500 units x $75) Total 262,500 $ 717,500 Manufacturing costs this year Direct materials Direct labor $ Overhead costs this year Variable overhead $3,600,000 Fixed overhead $7,000,000 Selling and administrative costs this year Variable Fixed $1,300,000 4,400,000 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Beginning inventory Manufacturing costs this year Net income (loss) Fixed costs added to(subtracted from) inventory 48 per unit 64 per unit