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Required information [The following information applies to the questions displayed below.] Oak Mart, a producer of...

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 115,000 units
Units sold this year 118,500 units
Units in beginning-year inventory 3,500 units
Beginning inventory costs
Variable (3,500 units × $140) $ 490,000
Fixed (3,500 units × $70) 245,000
Total $ 735,000
Manufacturing costs this year
Direct materials $ 40 per unit
Direct labor $ 62 per unit
Overhead costs this year
Variable overhead $ 3,200,000
Fixed overhead $ 7,000,000
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.

OAK MART COMPANY
Variable Costing Income Statement
Beginning inventory:
Manufacturing costs this year
Net income (loss)

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)

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ekkarill92 answered 2 years ago
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