Question

I can't seem to figure out the errors on here.

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 and administrative costs this year Variable Fixed 40 per unit 64 per unit $ $3,200,000 $7,600,000 $1,450,000 4,600,000 1. Prepare the current-year income statement for the company using variable costing.

Answer 1

1
OAK MART COMPANY
Variable Costing Income Statement
Sales		34050000	=113500*300
Less: Variable costs
Beginning inventory:
Variable costs	455000
Manufacturing cost this year
Direct materials	4400000		=110000*40
Direct labor	7040000		=110000*64
Variable overhead costs	3200000
Total variable costs available	15095000
Less: Ending finished goods inventory	0
Variable cost of goods sold	15095000
Variable selling and administrative expenses	1450000
Total variable costs		16545000
Contribution margin		17505000
Less: Fixed expenses
Fixed selling and administrative costs	4600000
Fixed overhead costs	7600000
Total fixed expenses		12200000
Net income (loss)		5305000