Reference no: EM133100073

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

Sales price per unit $330 per unit

Units produced this year 118,000 units

Units sold this year 118,000 units

Variable selling and administrative expenses $14 per unit

Fixed selling and administrative expenses $4,610,000 per year

Direct materials $42 per unit

Direct labor $64 per unit

Variable overhead $30 per unit

Fixed overhead $7,198,000 per year

Required -

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

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