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 320 per unit 105,000 units 108,500 units 3,500 units Variable (3,500 units x $135) Fixed (3,500 units x $80) Total $ 472,500 280,000 $ 752,500 Manufacturing costs this year Direct materials Direct labor Overhead costs this year 44 per unit 64 per unit Variable overhead Fixed overhead $3,200,000 $7,000,000 Selling and administrative costs this year Variable Fixed $1,300,000 4,200,000 Exercise 19-7 Part 1 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement Sales Less: Variable costs Beginning inventory: Variable costs Manufacturing costs this year Less: Cost of goods sold Fixed overhead costs Fixed selling and administrative costs Net income (loss) Exercise 19-7 Part 2 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)