2)
OAK MART COMPANY | ||
Absorption Costing Income Statement | ||
Sales (123250*300) | $36975000 | |
Less: Cost of goods sold | ||
Beginning inventory | $698750 | |
Manufacturing cost this year | ||
Direct materials (120000*$50) | 6000000 | |
Direct labor (120000*$64) | 7680000 | |
Variable overhead costs | 3000000 | |
Fixed overhead costs | 7600000 | |
Less: Ending inventory | 0 | |
Cost of goods sold | -24978750 | |
Gross margin | 11996250 | |
Selling general and administrative expenses | ||
Variable selling and administrative costs | 1400000 | |
Fixed selling and administrative costs | 4600000 | |
Total selling and administrative expenses | -6000000 | |
Net income (loss) | $5996250 | |
Net income under variable costing is higher than net income under absorption costing by: (6256250-5996250) | $260000 | |
Number of units added to (subtracted from) inventory (123250-120000) | 3250 | |
Fixed overhead cost per unit | $80 | |
Fixed costs added to (subtracted from) inventory | $260000 |
Working Notes:- Calculation of Net income under Variable Costing
Sales (123250*300) | $36975000 | |
Less: Variable costs | ||
Beginning inventory | ||
Variable | $438750 | |
Manufacturing cost this year | ||
Direct materials (120000*$50) | 6000000 | |
Direct labor (120000*$64) | 7680000 | |
Variable overhead costs | 3000000 | |
Less: Ending inventory | 0 | |
Variable cost of goods sold | 17118750 | |
Variable selling and administrative expenses | 1400000 | |
Total variable costs | 18518750 | |
Contribution margin | 18456250 | |
Less: Fixed costs | ||
Fixed overhead costs | 7600000 | |
Fixed selling and administrative costs | 4600000 | |
Total fixed expenses | 12200000 | |
Net income (loss) | $6256250 | |
CWUIR G 2. Prepare the current year income statement for the company using absorption costing. Part...
Prepare the current-year income statement for the company using
absorption costing.
Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. $ 320 per unit 115,000 units 118,750 units 3,750 units $ 487,500 281,250 $ 768,750 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,750 units * $130) Fixed (3,750 units X $75) Total Manufacturing costs this year Direct materials...
Saved The following information applies to the questions displayed below) Oak Mart, a producer of solid oak tables, reports the following data from its second year of business Sales price per unit $ 300 per Units produced this year 1 unit Units sold this year 120,000 units Units in beginning-year inventory 123,250 units Beginning inventory costs 3,250 units Variable (3,250 units * $135) $ 438,750 Fixed (3,250 units * $80) 260,000 Total $ 698,750 Manufacturing costs this year Direct materials...
pter 19 Homework Saved Sales price per unit $ 300 per Units produced this year unit Units sold this year 120,000 units Units in beginning-year inventory 123, 250 units Beginning inventory costs 3, 250 units Variable (3,250 units * $135) $ Fixed (3,250 units * $80) 438,750 260,000 Total $ 698,750 Manufacturing costs this year Direct materials $ Direct labor unit Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,600,000 Selling and administrative costs this year Variable $1,400,000 Fixed...
! Required information Exercise 19-7 Income reporting under absorption costing and variable costing LO P2 The following information applies to the questions displayed below.) Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 330 per unit 100,000 units 103,250 units 3,250 units $ 422,500 260,000 $ 682,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $130)...
Required information [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ 310 per unit Units produced this year 120,000 units Units sold this year 123,250 units Units in beginning-year inventory 3,250 units Beginning inventory costs Variable (3,250 units × $140) $ 455,000 Fixed (3,250 units × $75) 243,750 Total $ 698,750 Manufacturing costs this year Direct materials...
[The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ 310 per unit Units produced this year 120,000 units Units sold this year 123,250 units Units in beginning-year inventory 3,250 units Beginning inventory costs Variable (3,250 units × $140) $ 455,000 Fixed (3,250 units × $75) 243,750 Total $ 698,750 Manufacturing costs this year Direct materials $ 42...
Required information (The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 330 per unit 100, 000 units 103, 250 units 3,250 units $ 438,750 243,750 682,500 $ Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $135) Fixed (3,250 units X $75) Total Manufacturing costs this year Direct...
Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. $ 300 per unit 110,000 units 113,500 units 3,500 units $ 455,000 262,500 $ 717,500 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,500 units X $130) Fixed (3,500 units X $75) Total Manufacturing costs this year Direct materials Direct labor Overhead costs this year Variable overhead Fixed overhead Selling...
Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ 310 per unit Units produced this year 105,000 units Units sold this year 108,250 units Units in beginning-year inventory 3,250 units Beginning inventory costs Variable (3,250 units × $135) $ 438,750 Fixed (3,250 units × $75) 243,750 Total $ 682,500 Manufacturing costs this year Direct materials $ 44 per unit Direct labor $ 70 per unit Overhead...
Required information The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs 320 per unit 115,000 units 118,500 units 3,500 units Variable (3,500 units x $135) Fixed (3,500 units × $70) Total $ 472,500 245,000 $ 717,500 Manufacturing costs this year Direct materials Direct...