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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.


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ekkarill92 answered 2 years ago
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