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		115,000	units
Units sold this year		118,750	units
Units in beginning-year inventory		3,750	units
Beginning inventory costs
Variable (3,750 units $130)	$	487,500
Fixed (3,750 units $75)		281,250
Total	$	768,750
Manufacturing costs this year
Direct materials	$	40	per unit
Direct labor	$	66	per unit
Overhead costs this year
Variable overhead	$	3,200,000
Fixed overhead	$	7,400,000
Selling and administrative costs this year
Variable	$	1,300,000
Fixed		4,200,000

I did the best I could but I'm lost. Could you please help me with the rest?

Prepare the current-year income statement for the company using variable costing and absorption costing:

Absorption:

1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement $ 35,625,000 Sales Less: Variable costs Beginning inventory: Variable costs $ 487,500 Manufacturing costs this year Direct materials Direct labor Variable overhead costs 4,600,000 7,590,000 3,200,000 15,877,500 0 15,877,500 1,300,000 Less: Ending finished goods inventory Variable cost of goods sold Variable selling and administrative expenses $ 17,177,500 18,447,500 Total variable costs Contribution margin Less: Fixed expenses Fixed selling and administrative costs Fixed overhead costs $ 4,200,000 7,400,000 Total fixed expenses Net income (loss) 11,600,000 6,847,500 $ 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement $ 35,625,000 $ 768,750 Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials Direct labor Variable overhead costs Fixed overhead costs Less: Ending inventory 4,600,000 7,590,000 3,200,000 7,400,000 0 23,558,750 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses 4,200,000 1,300,000 5,500,000 Total selling general and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by: Fixed costs added to subtracted from) inventory