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

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[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 business.

Sales price per unit	$ 390	per unit
Units produced this year	130,000	units
Units sold this year	130,000	units
Variable selling and administrative expenses	$ 26	per unit
Fixed selling and administrative expenses	$ 4,670,000	per year
Direct materials	$ 54	per unit
Direct labor	$ 76	per unit
Variable overhead	$ 42	per unit
Fixed overhead	$ 9,490,000	per year

rev: 11_12_2021_QC_CS-282603, 01_18_2022_QC_CS-290728

Exercise 6-11 (Algo) Part 2

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

OAK MART
Income Statement (Absorption Costing)
Sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Income