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

question 29

Essay

Oxygen,Inc.reports the following information:
$$\begin{array} { | l | r | r|} \hline \text { Units produced } & 2,500& \text { units } \\\hline \text { Units sold } & 2,000& \text { units } \\\hline \text { Sales price } & \$ 200& \text { per unit } \\\hline \text { Direct materials } & \$ 40 &\text { per unit } \\\hline \text { Direct labor } & \$ 25 &\text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 90,000 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 15& \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 75,000 &\text { per year } \\\hline\end{array}$$ 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:

Postoperative Infection

An infection that occurs after a surgical procedure, potentially at the surgical site or within the body, compromising patient recovery.

Surgical Instrument

A tool or device designed for performing specific actions or carrying out desired effects during a surgery.

Surgical Instruments

Tools or devices used during surgical procedures to perform functions such as cutting, dissecting, grasping, holding, retracting, or suturing.

Surgical Instruments

Tools or devices designed specifically for performing surgical procedures.