Exercise 19-7 Income reporting under absorption costing and variable costing 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 second year of business. $ Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,750 units x $135) Fixed (3,750 units x $70) 310 per unit 120,000 units 123,750 units 3,750 units $ 506,250 262,500 $ 768,750 A 46 per unit 60 per unit A Total Manufacturing costs this year Direct materials Direct labor Overhead costs this year Variable overhead Fixed overhead Selling and adminstrative costs this year Variable Fixed $3,400,000 $ 7,400,000 $ 1,300,000 4,200,000 Exercise 19-7 Part 1 1. Prepare the current year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement Beginning inventory: Manufacturing costs this year Net income (loss) Exercise 19-7 Part 2 2. Prepare the current year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Beginning inventory Manufacturing costs this year Net income (loss)