omework G Required Informatlon [The following Information apples to the question
ID: 2544402 • Letter: O
Question
omework G Required Informatlon [The following Information apples to the questions displayed below] Oak Mart, a producer of sold oak tables, reports the following data from of business. Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory3,000 units Beginning inventory costs $300 per unlt 110,000 units 113,000 units Variable (3.000 units $130 S 390000 Fixed (3.000 units $80) 240000 Total $ 63000o Manufacturing costs this year Direct materials Direct labor Overhead costs this year 42 per unit 64 per unit Variable overhead Fixed overhead S3.200000 $7000.000 Selling and adminstrative costs this year Variable Fixed $ 1450000 4.400000 1. Prepare the curent year incame graremeh for he company sing varesieExplanation / Answer
Solution
OAK MART COMPANY
Absorption Costing Income Statement
Particulars
Amount ($)
Amount ($)
Sales
33,900,000
Less: Cost of goods sold
Beginning Inventory (Total = Variable + Fixed)
630,000
Add: Manufacturing costs this year
Direct Material (113,000 X $ 42)
4,746,000
Direct labor (113,000 X $ 64)
7,232,000
Variable overhead costs
3,200,000
Fixed overhead costs
7,000,000
Cost of goods sold
(22,808,000)
Gross margin
11,092,000
Less: Selling and administrative cost
Variable
1,450,000
Fixed
4,400,000
(5,850,000)
Net income
5,242,000
OAK MART COMPANY
Variable Costing Income Statement
Particulars
Amount ($)
Amount ($)
Sales
33,900,000
Less: Variable Cost of goods sold
Beginning Inventory (Variable)
390,000
Add: Manufacturing costs this year
Direct Material (113,000 X $ 42)
4,746,000
Direct labor (113,000 X $ 64)
7,232,000
Variable overhead costs
3,200,000
Variable Cost of goods sold
(15,568,000)
Gross Contribution margin
18,332,000
Less: Variable Selling and administrative cost
(1,450,000)
Contribution Margin
16,882,000
Less: Fixed Expense
Fixed beginning inventory cost
240,000
Fixed Manufacturing overhead
7,000,000
Fixed Selling and administrative cost
4,400,000
(11,640,000)
Net income
5,242,000
Particulars
Amount ($)
Amount ($)
Sales
33,900,000
Less: Cost of goods sold
Beginning Inventory (Total = Variable + Fixed)
630,000
Add: Manufacturing costs this year
Direct Material (113,000 X $ 42)
4,746,000
Direct labor (113,000 X $ 64)
7,232,000
Variable overhead costs
3,200,000
Fixed overhead costs
7,000,000
Cost of goods sold
(22,808,000)
Gross margin
11,092,000
Less: Selling and administrative cost
Variable
1,450,000
Fixed
4,400,000
(5,850,000)
Net income
5,242,000
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