prepare The current year income statement for the company using absorption cost

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. $ 320 per unit 115,000 units 118,000 units 3,000 units $ 405,000 240,000 $ 645,000 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,000 units x $135) Fixed (3,000 units * $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 40 per unit $ 62 per unit $3,220,000 $7,400,000 $1,416,000 4,600,000 Fixed 2. Prepare the current-year income statement for the company using absorption costing. Answer is not complete. Absorption Costing Income Statement Sales $ 37,760,000 $ 645,000 Less: Cost of goods sold Beginning inventory Manufacturing costs this year Direct materials Direct labor 4,600,000 7,130,000 3,220,000 7.400,000 Variable overhead costs Fixed overhead costs Cost of goods sold Gross margin 22,995,000 14,765,000 Fixed selling and administrative costs Variable selling and administrative expenses $ 4,600,000 1,416,000 Total selling general and administrative expenses Net income (loss) 6,016,000 $ 8,749,000 $ Net income under variable costing is higher than net income under absorption costing by: Number of units added to(subtracted from) inventory Fixed overhead cost per unit Fixed costs added to(subtracted from) inventory 240,000 3,000 80 S $ 240.000