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		108,000	units
Units in beginning-year inventory		3,000	units
Beginning inventory costs
Variable (3,000 units $130)	$	390,000
Fixed (3,000 units $75)		225,000
Total	$	615,000
Manufacturing costs this year
Direct materials	$	42	per unit
Direct labor	$	70	per unit
Overhead costs this year
Variable overhead	$	3,600,000
Fixed overhead	$	7,400,000
Selling and administrative costs this year
Variable	$	1,350,000
Fixed		4,400,000

1.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)

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)