! Required information [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. 320 per unit 120,000 units 124,000 units 4,000 units $ 520,000 300,000 820,000 $ Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (4,000 units X $130) Fixed (4,000 units X $75) Total Manufacturing costs this year Direct materials Direct labor Overhead coate this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed $ 42 per unit 64 per unit $3,200,000 $ 7,200,000 $1,350,000 4,600,000 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales 39,680,000 Beginning inventory Manufacturing costs this year Variable overhead costs Fixed overhead costs 520,000 300,000 Direct materials Direct labor Variable overhead costs Total fixed costs Gross margin 5,040,000 7,860,000 3,200,000 16,920,000 29,304,000 1,350,000 4,600,000 Variable selling and administrative expenses Fixed selling and administrative costs Total selling general and administrative expenses Net income (loss) 5,950,000 Fixed costs added to(subtracted from) inventory