Question

Help Mang Save & Exit Submit Check my work Provide Oak Mart, a producer of solid oak tables, reports the following data from its second year of business Hawblitzel Yamal Kinberly MO Hawbie Yemal KberyM Hawblt Yamal Kimberly MO Hawblitre Yarnall Kimberly, MD Hawbitre Yamal, Kinberly MO Hawblitzel Yamal Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,000 unita x $135) Fixed (3,000 units $80) per 320 unit 115,000 units 118,000 unita 3,000 units ING Self 405,000 240,000 645, 000 Hai MO Total Manufacturing costs this year Hav MO Kimberly. MD Direct materials per 40 unit 62 Per unit Hawbitzel Direct labor Yarmal overhead costs this year Variable overhead Fixod overhead Selling and administrative costs this year Variable Kimberly MD Hawbltre Yamal $3,220, 000 $7,400,000 Ha MO Kimberly MD Hawblitrel nces $1,416,000 4,600,000 Fixed Medel 1. Prepare the current-year income statement for the company using variable costing Mark as Reviened OAK MART COMPANY Last 4 Visits Variable Costing Income Statement This Vist Aved Sales Today Orders e Next Nov 19 123 of 7 KPrev Paet Significant History/Details Nov 15 Smoking Never Smoker

Answer 1

Variable cost per unit
Direct material	$40
Direct labor	62
Variable overhead ($3,220,000/115,000)	28
Variable cost per unit	$130

OAK MART COMPANY Variable Costing Income Statement
Sales (118,000*$320)		$37,760,000
Less: Variable cost:
Beginning inventory (3,000*$135)	$405,000
Add:Variable cost of goods manufactured (115,000*$130)	14,950,000
Variable cost of goods available for sale	15,355,000
Less: Ending inventory	0
Variable cost of goods sold	15,355,000
Variable selling and administrative cost	1,416,000
Total variable cost		16,771,000
Contribution margin		20,989,000
Less: Fixed cost:
Fixed manufacturing overhead	7,400,000
Fixed selling and administrative cost	4,600,000
Total fixed cost		12,000,000
Net operating income		$8,989,000