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. Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,000 units * $135) Fixed (3,000 units * $80) 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 310 per unit 110,000 units 113,000 units 3,000 units $ 405,000 240,000 $ 645,000 $ 42 per unit $ 64 per unit $3,200,000 $7,000,000 $1,500,000 4,400,000 Exercise 19-7 Part 1 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY $ 35,030,000 Variable Costing Income Statement Sales Less: Variable costs Beginning inventory: Variable costs $ 1,500,000 Fixed costs $ 4,400,000 Manufacturing costs this year Direct materials 5,900,000 Net income (los)