Oak Mart, a producer of solid oak tables, reports the following data from its first year of business.
| Sales price per unit | $ 365 | per unit |
|---|---|---|
| Units produced this year | 125,000 | units |
| Units sold this year | 125,000 | units |
| Variable selling and administrative expenses | $ 21 | per unit |
| Fixed selling and administrative expenses | $ 4,645,000 | per year |
| Direct materials | $ 49 | per unit |
| Direct labor | $ 71 | per unit |
| Variable overhead | $ 37 | per unit |
| Fixed overhead | $ 8,500,000 | per year |
2. Prepare the current-year income statement using absorption costing.

