### Case Study: Oak Mart Company - Financial Data Analysis**Oak Mart**, a producer of solid oak tables, reports the following data from its second year of business:#### Sales and Inventory- **Sales price per unit**: $300 per unit- **Units produced this year**: 115,000 units- **Units sold this year**: 118,250 units- **Units in beginning-year inventory**: 3,250 units#### Beginning Inventory Costs- **Variable** (3,250 units x $135): $438,750- **Fixed** (3,250 units x $80): $260,000- **Total**: $698,750#### Manufacturing Costs (This Year)- **Direct materials**: $48 per unit- **Direct labor**: $64 per unit#### Overhead Costs (This Year)- **Variable overhead**: $10,000,000- **Fixed overhead**: $7,400,000#### Selling and Administrative Costs (This Year)- **Variable**: $1,300,000- **Fixed**: $1,400,000---### Instructions for Students:1. **Prepare the Current-Year Income Statement using Variable Costing.**To illustrate the variable costing method, we provide a template below for your practice:#### Example: Variable Costing Income Statement Template```markdown**OAK MART COMPANY***Variable Costing Income Statement*| **Description** | **Amount** ||----------------------------------|------------------|| Sales (118,250 units x $300) | $35,475,000 || Less: Variable Costs | || Variable production costs | $(Total variable production costs) || Variable S&A expenses | $(Variable selling and administrative costs) || Total Variable Costs | $(Sum of above) || Contribution Margin | $ || Less: Fixed Costs | || Fixed production costs | $7,400,000 || Fixed S&A expenses | $1,400,000 || Total Fixed Costs | $8,800,000 || Net Operating Income | $ |```Replace the placeholders with actual numbers calculated from the provided data.---This data and exercise will help you understand how to analyze financial statements and the concept of variable ### Oak Mart Company Variable Costing Income Statement**1. Prepare the current-year income statement for the company using variable costing.**#### Income Statement | Category | Amount ||----------------------------------|---------|| **Variable Costing Income Statement** | || **Beginning Inventory:** | || | || | || **Manufacturing Costs This Year:** | || | 0 || | || | ||----------------------------------|---------|- **Graphs or Diagrams Description:** There is no graph or diagram visible in the image. The image contains a segment of a variable costing income statement template with various blue-bordered cells organized into rows and columns. The cells contain headings like "Beginning inventory:" and "Manufacturing costs this year," with placeholders for entering specific amounts. The entire table structure is laid out for detailing the different categories that would be reported in a variable costing method income statement.This template is a part of an instructional material likely intended to guide students through the process of creating a variable costing income statement for Oak Mart Company.

Under variable costing the unit product cost is sum total of direct material , direct labor and…

Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit Units produced this year Units sold this year 300 per unit 115,000 units 118,250 units 3,250 units Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $135) Fixed (3,250 units x $80) Total Manufacturing costs this year Direct materials Direct labor 48 per unit 64 per unit Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed $ 438,750 260,000 $ 698,750 $ $ $3,000,000 $7,400,000 $1,300,000 4,400,000

Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit Units produced this year Units sold this year 300 per unit 115,000 units 118,250 units 3,250 units Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $135) Fixed (3,250 units x $80) Total Manufacturing costs this year Direct materials Direct labor 48 per unit 64 per unit Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed $ 438,750 260,000 $ 698,750 $ $ $3,000,000 $7,400,000 $1,300,000 4,400,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

See similar textbooks

Similar questions

The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $18,500,000 $20,000,000 Beginning inventories 940,000 860,000 Cost of goods sold 9,270,000 10,800,000 Ending inventories 1,120,000 940,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days It is NOT 44 or 31 dayas\ys
The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $18,500,000 $20,000,000 Beginning inventories 940,000 860,000 Cost of goods sold 9,270,000 10,800,000 Ending inventories 1,120,000 940,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover 2. Number of days' sales in inventory days days b. The inventory position of the business has . The inventory turnover has , while the number of days' sales in inventory has . The sales volume has faster than the inventory, resulting in a inventory position.
The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $18,500,000 $20,000,000 Beginning inventories 940,000 860,000 Cost of goods sold 9,270,000 10,800,000 Ending inventories 1,120,000 940,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days b. The inventory position of the business has . The inventory turnover has , while the number of days' sales in inventory has . The sales volume has faster than the inventory, resulting in a inventory position.
Consider the following details about a firm from the past year. Assume that this sample time period provides a good estimate for the firm's cycles. What is its Inventory Period? March 1 - Acquire Inventory March 20 - Pay $25,000 for Inventory April 22 - Sell Inventory on Credit May 23 - Collect $40,000 for Sale on Credit
A Firm reported year-end cost of goods sold of $10 million. It listed $2 million of inventory on its balance sheet. Using a 365-day year, how many days did the firm's inventory stay on the premise? Multiple Choice _____ 73 days _____ 20 days _____ 18.25 days _____ 2 days
Ratio proficiency McDougal Printing, Inc., had sales totaling $43,000,000 in its recent fiscal year. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a 365-day year. (Click the icon here a in order to copy the contents of the data table below into a spreadsheet.) McDougal Printing, Inc. Sales $43,000,000 Gross profit margin 83% Operating profit margin Net profit margin 35% 7% Return on total assets 14.7% Return on common equity 22% Total asset turnover 2.1 Average collection period 53.4 days Calculate values for the following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable
The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $17,900,000 $18,100,000 Beginning inventories 760,000 700,000 Cost of merchandise sold 8,964,000 9,782,000 Ending inventories 900,000 760,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Prior Year Inventory turnover Number of days' sales in inventory days days
Please Do both questions Delphino’s has sales for the year of $127,300 and cost of goods sold of $86,700. The firm carries an average inventory of $14,300 and has an average accounts payable balance of $13,600. What is the inventory period? 81.36 days 60.20 days 58.68 days 89.02 days The Lumber Yard has projected sales for April through July of $152,400, $161,800, $189,700, and $196,400, respectively. The firm collects 52 percent of its sales in the month of sale, 46 percent in the month following the month of sale, and the remainder in the second month following the month of sale. What is the amount of the July collections? $181,508 $122,852 $189,819 $192,626
BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data:Total assets turnover: 15×Days sales outstanding: 36.5 daysaInventory turnover ratio: 5×Fixed assets turnover: 3.0×Current ratio: 2.0×Gross profit margin on sales: (Sales − Cost of goods sold)/Sales = 25%aCalculation is based on a 365-day year
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Endor Company begins the year with $90,000 of goods in inventory. At year-end, the amount in inventory has increased to $103,000. Cost of goods sold for the year is $600,000. Compute Endor's inventory turnover and days' sales in inventory. Assume there are 365 days in the year. Inventory Turnover Choose Numerator: Choose Denominator: Inventory Turnover Inventory Turnover times Days' Sales in Inventory Choose Numerator: Choose Denominator: Days = Days' Sales in Inventory 365 Days' sales in inventory 365 days
Accounting ABC Corporation has the following information for the year: Net Sales $1,000,000, Beginning Inventory $200,000, Purchases $600,000, Ending Inventory $150,000, and Gross Profit Rate 40%. Calculate the cost of goods sold and the gross profit for the year.