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.