Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 [The following...

Required information

Exercise 19-7 Income reporting under absorption costing and variable costing LO P2

[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	$	300	per unit
Units produced this year		120,000	units
Units sold this year		123,750	units
Units in beginning-year inventory		3,750	units
Beginning inventory costs
Variable (3,750 units × $135)	$	506,250
Fixed (3,750 units × $70)		262,500
Total	$	768,750
Manufacturing costs this year
Direct materials	$	50	per unit
Direct labor	$	70	per unit
Overhead costs this year
Variable overhead	$	3,200,000
Fixed overhead	$	7,200,000
Selling and administrative costs this year
Variable	$	1,400,000
Fixed		4,000,000

Exercise 19-7 Part 1

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

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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