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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
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.
Sales price per unit | $ | 310 | per unit |
Units produced this year | 100,000 | units | |
Units sold this year | 103,250 | units | |
Units in beginning-year inventory | 3,250 | units | |
Beginning inventory costs | |||
Variable (3,250 units $130) | $ | 422,500 | |
Fixed (3,250 units $75) | 243,750 | ||
Total | $ | 666,250 | |
Manufacturing costs this year | |||
Direct materials | $ | 48 | per unit |
Direct labor | $ | 66 | per unit |
Overhead costs this year | |||
Variable overhead | $ | 3,200,000 | |
Fixed overhead | $ | 7,200,000 | |
Selling and administrative costs this year | |||
Variable | $ | 1,450,000 | |
Fixed | 4,200,000 | ||
2. Prepare the current-year income statement for the company using absorption costing.
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