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 115,000 units Units sold this year 118,750 units Units in beginning-year inventory 3,750 units Beginning inventory costs Variable (3,750 units × $140) $ 525,000 Fixed (3,750 units × $70) 262,500 Total $ 787,500 Manufacturing costs this year Direct materials $ 46 per unit Direct labor $ 64 per unit Overhead costs this year Variable overhead $ 3,200,000 Fixed overhead $ 7,400,000 Selling and administrative costs this year Variable $ 1,450,000 Fixed 4,000,000 1. Prepare the current-year income statement for the company using variable costing
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 115,000 units Units sold this year 118,750 units Units in beginning-year inventory 3,750 units Beginning inventory costs Variable (3,750 units × $140) $ 525,000 Fixed (3,750 units × $70) 262,500 Total $ 787,500 Manufacturing costs this year Direct materials $ 46 per unit Direct labor $ 64 per unit Overhead costs this year Variable overhead $ 3,200,000 Fixed overhead $ 7,400,000 Selling and administrative costs this year Variable $ 1,450,000 Fixed 4,000,000 1. Prepare the current-year income statement for the company using variable costing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | 115,000 | units | |
| Units sold this year | 118,750 | units | |
| Units in beginning-year inventory | 3,750 | units | |
| Beginning inventory costs | |||
| Variable (3,750 units × $140) | $ | 525,000 | |
| Fixed (3,750 units × $70) | 262,500 | ||
| Total | $ | 787,500 | |
| Direct materials | $ | 46 | per unit |
| Direct labor | $ | 64 | per unit |
| Variable overhead | $ | 3,200,000 | |
| Fixed overhead | $ | 7,400,000 | |
| Selling and administrative costs this year | |||
| Variable | $ | 1,450,000 | |
| Fixed | 4,000,000 | ||
1. Prepare the current-year income statement for the company using variable costing.
Transcribed Image Text:OAK MART COMPANY
Variable Costing Income Statement
Beginning inventory:
Manufacturing costs this year
Net income (loss)
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