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 $ 310 per unit 110,000 units 114,000 units 4,000 units $ 520,000 200,00 $800,000 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (4,000 units * $130) Fixed (4,000 units X $70) 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 48 per unit 68 per unit $3,600,000 $7,400,000 $1,350,000 4,000,000 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales Less Cost of goods sold Beginning inventory Manufacturing costs this year Direct labor Direct materials Variable overhead costs Fbced overhead costs 8 omework i Loved Soveg 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct labor Direct materials Variable overhead costs Fixed overhead costs Net income (loss) 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement Sales 35,340,000 Less: Variable costs Beginning inventory Variable costs 520,000 Manufacturing costs this year Direct materials Direct labor Variable overhead costs Total variable costs available Less: Ending finished goods inventory Variable selling and administrative expenses Variable cost of goods sold 5,280,000 7,480,000 3,600,000 16,880,000 0 1,350,000 16,880,000 18,230,000 17,110,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs $ 7,400,000 4,000,000 11,400,000 Total fixed expenses Net income (loss)
