Anatase,Inc Assume That the Production Costs and Sales Prices Were the |

question 219

Essay

Anatase,Inc.reports the following information:
$$\begin{array} { | l | r | c | } \hline \text { Units produced } & 2,500 & \text { units } \\\hline \text { Units sold } & 2,000 & \text { units } \\\hline \text { Sales price } & \$ 200 & \text { per unit } \\\hline \text { Direct materials } & \$ 40 & \text { per unit } \\\hline \text { Direct labor } & \$ 25 & \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 & \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 90,000 & \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 15 & \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 75,000 & \text { per year } \\\hline\end{array}$$ Assume that the production costs and sales prices were the same in the previous year.Assume no beginning inventories.
Requirements:
a)Calculate unit product cost using absorption costing and variable costing.
b)Calculate the operating income using absorption costing and variable costing.

---

Definitions:

United States

A country located in North America, comprising 50 states and known for its significant influence on global economics, politics, and culture.

Canada

Canada is a North American country stretching from the U.S. in the south to the Arctic Circle in the north, known for its vast, natural landscapes, multicultural cities, and bilingual population (English and French).

Mexico

A country located in the southern portion of North America, known for its rich cultural heritage, diverse landscapes, and as an important emerging market.

Moral Standards

Principles or rules of behavior based on ideas about what is ethically right and wrong, guiding actions and decisions in personal and professional contexts.