Required information Exercise 19-11 (Algo) Absorption costing and variable costing income statements 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 first year of business. Sales price per unit $350 per unit Units produced this year Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead Fixed overhead OAK MART Income Statement (Absorption Costing) $ Exercise 19-11 (Algo) Part 2 2. Prepare the current-year income statement using absorption costing. Sales Cost of goods sold Gross profit Selling and administrative expenses Income 42,700,000 122,000 units 122,000 units $18 per unit $ 4,630,000 per year $ 46 per unit $ 68 per unit $ 34 per unit $ 7,930,000 per year
Required information Exercise 19-11 (Algo) Absorption costing and variable costing income statements 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 first year of business. Sales price per unit $350 per unit Units produced this year Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead Fixed overhead OAK MART Income Statement (Absorption Costing) $ Exercise 19-11 (Algo) Part 2 2. Prepare the current-year income statement using absorption costing. Sales Cost of goods sold Gross profit Selling and administrative expenses Income 42,700,000 122,000 units 122,000 units $18 per unit $ 4,630,000 per year $ 46 per unit $ 68 per unit $ 34 per unit $ 7,930,000 per year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9
![Required information
Exercise 19-11 (Algo) Absorption costing and variable costing income statements 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 first year of business.
Sales price per unit
Units produced this year
$ 350 per unit
122,000 units
122,000 units
Units sold this year
Variable selling and administrative expenses
Fixed selling and administrative expenses
Direct materials
$ 18 per unit
$ 4,630,000 per year
$ 46 per unit
Direct labor
$ 68 per unit
Variable overhead
Fixed overhead
Exercise 19-11 (Algo) Part 2
2. Prepare the current-year income statement using absorption cesting.
OAK MART
Income Statement (Absorption Costing)
$
Sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Income
$ 34 per unit
$ 7,930,000 per year
42,700,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4662fa2e-7bc0-4b41-9bba-562451df4da7%2Fdae1b0b7-54e1-4a9f-a8b2-e50b53243c25%2F0h5pnqo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 19-11 (Algo) Absorption costing and variable costing income statements 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 first year of business.
Sales price per unit
Units produced this year
$ 350 per unit
122,000 units
122,000 units
Units sold this year
Variable selling and administrative expenses
Fixed selling and administrative expenses
Direct materials
$ 18 per unit
$ 4,630,000 per year
$ 46 per unit
Direct labor
$ 68 per unit
Variable overhead
Fixed overhead
Exercise 19-11 (Algo) Part 2
2. Prepare the current-year income statement using absorption cesting.
OAK MART
Income Statement (Absorption Costing)
$
Sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Income
$ 34 per unit
$ 7,930,000 per year
42,700,000
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