newconnectmheducationcom Planner Inserts e Barrows Custo Bu

? newconnect.mheducation.com Planner Inserts e Barrows Custo. Business Manag Customized Sun... Barrows Custom. Duvet Cover Set Connect Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate comp Return to 4 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. Part 1 of 2 320 per unit Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs 115,000 units 118,000 units 3,000 units oints $ 405,000 240,000 Variable (3,000 units x $135) Pixed (3,000 units $80) Total 645,000 Manufacturing costs this year Direct materials Direct labor Overhead costs this year 40 per unit 62 per unit Variable overhead Fixed overhead $3,220,000 $7,400,000 Selling and administrative costs this year Variable Fixed $1,416,000 4,600,000 1. Prepare the current-year income statement for the company using variable costing ? 45 | of 8 ??? Next > ic

Solution

Variable c osting Income Sstatement Sales revenue (118000 units @320) 37760000 Less: Variable cost Beginning Inventory Variable cost (3000 units @ 135) 405000 Manufacturing cost this year Material (115000*40) 4600000 Labour (115000*62) 7130000 Oh 3220000 Total Variable cost available 15355000 Less: ending Inventory 0 Variable cost of Goods sold 15355000 Variable Sselling 1416000 Total Variable cost    16771000 Contribution margin 20989000 Less: Fixed expense Fixed manufacturing Oh 7,400,000 Fixed Selling Oh 4,600,000 Total Fixed cost 12,000,000 Net Operating income 8,989,000