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.

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Definitions:

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A diverse underwater ecosystem characterized by reef-building corals, which are colonies of tiny living animals found in marine waters containing few nutrients.

Shallow Water

Areas of water that are not deep, typically referring to parts of a body of water where sunlight can reach the bottom, influencing aquatic life and ecosystems.

Densely Populated

An area characterized by a high number of people living within a given space.

Water Cycle

The continuous movement of water on, above, and below the surface of the Earth, involving processes such as evaporation, condensation, precipitation, and runoff.