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	$	320	per unit
Units produced this year		100,000	units
Units sold this year		103,500	units
Units in beginning-year inventory		3,500	units
Beginning inventory costs
Variable (3,500 units $135)	$	472,500
Fixed (3,500 units $70)		245,000
Total	$	717,500
Manufacturing costs this year
Direct materials	$	44	per unit
Direct labor	$	68	per unit
Overhead costs this year
Variable overhead	$	3,000,000
Fixed overhead	$	7,400,000
Selling and administrative costs this year
Variable	$	1,300,000
Fixed		4,200,000

1. Prepare the current-year income statement for the company using variable costing.

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	$	320	per unit
Units produced this year		100,000	units
Units sold this year		103,500	units
Units in beginning-year inventory		3,500	units
Beginning inventory costs
Variable (3,500 units $135)	$	472,500
Fixed (3,500 units $70)		245,000
Total	$	717,500
Manufacturing costs this year
Direct materials	$	44	per unit
Direct labor	$	68	per unit
Overhead costs this year
Variable overhead	$	3,000,000
Fixed overhead	$	7,400,000
Selling and administrative costs this year
Variable	$	1,300,000
Fixed		4,200,000

2. Prepare the current year income statement for the company using absorption costing.