### Required Information#### 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:** 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:** $3,000,000 - **Fixed overhead:** $7,400,000#### Selling and administrative costs this year:- **Variable:** $1,300,000- **Fixed:** $4,400,000---### Task:1. Prepare the current-year income statement for the company using absorption costing.#### (Navigation buttons: "Oak Mart Company," "Prev," "4 of 5," "Next") ### Cost Accounting: Income Statement under Variable and Absorption CostingBelow is a detailed example of an income statement under variable and absorption costing methods:#### Manufacturing Costs for the Year:- **Direct materials**: $5,520,000- **Direct labor**: $7,360,000- **Variable overhead costs**: $3,000,000- **Fixed overhead costs**: $7,400,000#### Less: Ending Inventory- Note: For this example, ending inventory is $0.#### Cost of Goods Sold (COGS)- **Total**: $23,978,750#### Gross Margin- **Total**: $11,496,250#### Selling General and Administrative Expenses1. **Variable selling and administrative expenses**: $1,300,0002. **Fixed selling and administrative costs**: $4,400,000**Total Selling General and Administrative Expenses**: $5,700,000#### Net Income (Loss)- **Total**: [This value is left blank in the provided image]#### Additional Information- **Net income under variable costing** is higher than net income under absorption costing by: [Value highlighted but not specified in the image]- **Fixed costs added to (subtracted from) inventory**: [Value highlighted but not specified in the image]### Explanation of Graphs and DiagramsThere are no graphs or diagrams in the provided image; it consists solely of tabulated numerical data and headers related to financial accounting. The table calculates crucial components of cost accounting, comparing variable and absorption costing methods for a clearer understanding of net income variations.For detailed learning, this would be followed by deeper explanations of how each costing method affects net income and inventory valuations. The fixed costs highlighted could have a further breakdown explaining their impact on inventory and profit margins under different costing methods.### Navigation Instruction- **Page Navigation**: - Current Page: 4 out of 5 - Options to move to Previous (Prev) or Next page available.Feel free to explore further pages for more in-depth examples and explanations related to this topic.

The income statement is prepared to record revenue and expenses for the current period. Using…

Required information [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 $ 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 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 48 per unit 64 per unit

Required information [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 $ 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 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 48 per unit 64 per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [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 Sales price per unit Units produced this year $ 325 per unit 117,000 units 117,000 units Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses $ 13 per unit $ 4,605,000 per year Direct materials Direct labor $ 41 per unit $ 63 per unit Variable overhead Fixed overhead $ 29 per unit $ 7,020,000 per year 2. Prepare the current-year income statement using absorption costing. Income OAK MART Income Statement (Absorption Costing)
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Please answer questions #2-7, Thank you!! :) Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 90,450 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $4,341,600 Cost of goods sold 2,144,000 Gross profit $2,197,600 Expenses: Selling expenses $1,072,000 Administrative expenses 1,072,000 Total expenses 2,144,000 Income from operations $53,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $384,000 in yearly sales. The expansion will increase fixed costs by $38,400, but will not affect the relationship between sales and…
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The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $5.00 Unit operating expenses of the period 4.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase