Question

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 unit Direct labor unit Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,600,000 Selling and administrative costs this year $1,400,000 Variable 4,600,000 Fixed 50 per 64 per Prev 1 2 3 of 10 !!! Next >

Answer 1

$ 36,975,000 OAK MART COMPANY Variable Costing Income Statement Sales ($300 * 123,250) Less: Variable Costs Beginning Inventory: Variable Costs $ 438,750 Manufacturing cost this year Direct materials ($50 * 120,000) $ 6,000,000 Direct labor ($64 * 120,000) $ 7,680,000 Variable overhead costs $ 3,000,000 Total variable costs available $ 17,118,750 Less: Ending finished goods inventory Variable cost of goods sold $ 17,118,750 Variable selling and administrative expenses $ 1,400,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs $ 7,600,000 Fixed selling and administrative costs $ 4,600,000 Total fixed expenses Net income (loss) $ 18,518,750 $ 18,456,250 $ 12,200,000 $ 6,256,250