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

Sales price per unit	$	320	per unit
Units produced this year		110,000	units
Units sold this year		114,000	units
Units in beginning-year inventory		4,000	units
Beginning inventory costs
Variable (4,000 units $135)	$	540,000
Fixed (4,000 units $80)		320,000
Total	$	860,000
Manufacturing costs this year
Direct materials	$	42	per unit
Direct labor	$	62	per unit
Overhead costs this year
Variable overhead	$	3,400,000
Fixed overhead	$	7,200,000
Selling and adminstrative costs this year
Variable	$	1,450,000
Fixed		4,000,000

Prepare the current year income statement for the company using variable costing.

OAK MART COMPANY

Variable Costing Income Statement
Beginning inventory:
Manufacturing costs this year
Net income (loss)

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)