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Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ 300 per
Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.
Sales price per unit | $ | 300 | per unit |
Units produced this year | 105,000 | units | |
Units sold this year | 108,250 | units | |
Units in beginning-year inventory | 3,250 | units | |
Beginning inventory costs | |||
Variable (3,250 units $135) | $ | 438,750 | |
Fixed (3,250 units $80) | 260,000 | ||
Total | $ | 698,750 | |
Manufacturing costs this year | |||
Direct materials | $ | 50 | per unit |
Direct labor | $ | 62 | per unit |
Overhead costs this year | |||
Variable overhead | $ | 3,400,000 | |
Fixed overhead | $ | 7,000,000 | |
Selling and administrative costs this year | |||
Variable | $ | 1,450,000 | |
Fixed | 4,200,000 | ||
1. Prepare the current-year income statement for the company using variable costing.
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