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Exercise 6-11 (Algo) Absorption costing and variable costing income statements LO P2

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Oak Mart, a producer of solid oak tables, reports the following data from its first year of business.

Sales price per unit	$ 375	per unit
Units produced this year	127,000	units
Units sold this year	127,000	units
Variable selling and administrative expenses	$ 23	per unit
Fixed selling and administrative expenses	$ 4,655,000	per year
Direct materials	$ 51	per unit
Direct labor	$ 73	per unit
Variable overhead	$ 39	per unit
Fixed overhead	$ 8,890,000	per year

1. Prepare the current-year income statement using variable costing. 2. Prepare the current-year income statement using absorption costing