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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. 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 $135) Fixed (3,500 units x $80) 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 $ 320 per unit 105,000 units 108,500 units 3,500 units $ 472,500 280,000 $ 752,500 $ $ 44 per unit 64 per unit $3,200,000 $7,000,000 $1,300,000 4,200,000

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. 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 $135) Fixed (3,500 units x $80) 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 $ 320 per unit 105,000 units 108,500 units 3,500 units $ 472,500 280,000 $ 752,500 $ $ 44 per unit 64 per unit $3,200,000 $7,000,000 $1,300,000 4,200,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 4CE: Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable...
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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. 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 $135) Fixed (3,500 units x $80) 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 320 per unit 105,000 units 108,500 units 3,500 units $ 472,500 280,000 $ 752,500 $ $ 44 per unit 64 per unit $3,200,000 $7,000,000 $1,300,000 4,200,000
Transcribed Image Text: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. 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 $135) Fixed (3,500 units x $80) 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 320 per unit 105,000 units 108,500 units 3,500 units $ 472,500 280,000 $ 752,500 $ $ 44 per unit 64 per unit $3,200,000 $7,000,000 $1,300,000 4,200,000
Exercise 19-7 Part 1 1. Prepare the current-year income statement for the company using variable costing. Sales Less: Variable costs OAK MART COMPANY Variable Costing Income Statement Beginning inventory: Variable costs Manufacturing costs this year Less: Cost of goods sold Fixed overhead costs Fixed selling and administrative costs Net income (loss) 0 0
Transcribed Image Text:Exercise 19-7 Part 1 1. Prepare the current-year income statement for the company using variable costing. Sales Less: Variable costs OAK MART COMPANY Variable Costing Income Statement Beginning inventory: Variable costs Manufacturing costs this year Less: Cost of goods sold Fixed overhead costs Fixed selling and administrative costs Net income (loss) 0 0
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