Oak Mart, a producer of solid oak tables, reports the following data from its first year of business.

Sales price per unit	$ 320	per unit
Units produced this year	110,000	units
Units sold this year	110,000	units
Variable selling and administrative expenses	$ 11	per unit
Fixed selling and administrative expenses	$ 4,000,000	per year
Direct materials	$ 46	per unit
Direct labor	$ 68	per unit
Variable overhead	$ 32	per unit
Fixed overhead	$ 7,400,000	per year

2. Prepare the current-year income statement using absorption costing.