Part 1: Prepare the current-year income statement for the company using variable costing.

Part 2: Prepare the current-year incone statement for the company using absorption costing.

Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 310 per unit 100,000 units 103,750 units 3,750 units $ 525,000 262,500 $ 787,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,750 units x $140) Fixed (3,750 units * $70) Total Manufacturing costs this year Direct materials Direct labor Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed A 40 per unit 68 per unit $3,000,000 $7,200,000 $1,400,000 4,200,000 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 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