Oak Mart, a producer of solid oak tables, reports the following data from its second year...
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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 (3,250 units $135) Fixed (3,250 units x $80) 320 per unit 110,000 units 113,250 units 3,250 unita $ 438,750 260,000 $ 698,750 Total Manufacturing costs this year Direct materials Direct labor 42 per unit 68 per unit Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year $3,600,000 $7,400,000 Variable $1,500,000 4,200,000 Fixed Exercise 19-7 Part 2 2 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory 中 Manufacturing costs this year Direct materials Direct labor Variable overhead costs ces Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by: < Prev 5. of 8 Next Required information OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials Direct labor Variable overhead costs Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by: Fixed costs added to(subtracted from) inventory < Prev of 8 Next > Sun 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 (3,250 units $135) Fixed (3,250 units x $80) 320 per unit 110,000 units 113,250 units 3,250 unita $ 438,750 260,000 $ 698,750 Total Manufacturing costs this year Direct materials Direct labor 42 per unit 68 per unit Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year $3,600,000 $7,400,000 Variable $1,500,000 4,200,000 Fixed Exercise 19-7 Part 2 2 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory 中 Manufacturing costs this year Direct materials Direct labor Variable overhead costs ces Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by: < Prev 5. of 8 Next Required information OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials Direct labor Variable overhead costs Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by: Fixed costs added to(subtracted from) inventory < Prev of 8 Next > Sun
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Income statement using Absorption costing method SAles 113250320 36240000 LEss ... View the full answer
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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