Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 [The following information applies to the questions displayed below.) 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, 250 units 3,250 units $ 455,000 243,750 698,750 $ Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units * $140) Fixed (3,250 units x $75) 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 42 per unit 62 per unit $3,400,000 $7,200,000 $1,400,000 4,600,000 Exercise 19-7 Part 1 1. Prepare the current-year income statement for the company using variable costing. Required information OAK MART COMPANY Variable Costing Income Statement Sales $ 32,007,500 Less: Variable costs Beginning inventory Variable costs R $ 455,000 Manufacturing costs this year Direct materials NMA RAAMAAANAAAAAAAAAAAA Direct labor Variable selling and administrative expenses Total variable costs available Less Fixed expenses Fixed selling and administrative costs Fixed overhead costs 4,200,000 6,200,000 1,400,000 12,255,000 $ 4,600,000 7.200,000 Total fixed costs Contribution margin 11,800,000 20,207,500 Net income (loss) Required information OAK MART COMPANY Absorption Costing Income Statement Sales $ 32,007,500 $ 698,750 Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials Direct labor Variable overhead costs Fixed overhead costs 4,200,000 6,200,000 3,400,000 7,200,000 21,698,750 10,308,750 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses IS 4,600,000 1,400,000 Total selling general and administrative expenses Net income (loss) 6,000,000 4,308,750 $ Number of units added to(subtracted from) inventory 3,250 Fixed costs added to(subtracted from) inventory 3. Fill in the blanks: The dollar difference in variable costing income and absorption costing income fixed overhead per unit