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
Related questions
Question
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 |
| 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.
Transcribed Image Text:OAK MART COMPANY
Variable Costing Income Statement
Beginning inventory:
Manufacturing costs this year
Net income (loss)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education