Problem 2 (20 points). Texas, Inc. had the attached data available for its finished goods inventory for fiscal years 20X0 and The following data relate to standard production costs for one unit of product is provided below. 20XT. TEXAS, INC. STANDARD PRODUCTION COSTS FOR ONE UNIT OF PRODUCT Direct Materials $ Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (based on normal capacity of 25,000 units) Total Standard Cost Per Unit s 24.00 25.00 3.00 8.00 60.00 The company sells its product for $100 per unit. Selling and administrative expenses are $150,000 per year plus $8 per unit sold. The company had no beginning or ending work in process inventories and there were no variable cost variances during the two year period provided above. Any over-or underapplied fixed manufacturing overhead is considered to be insignificant. REQUIRED: Using the attached forms, prepare income statements for fiscal year 20X 1 using the following costing methods. Round all calculations to the nearest whole dollar. Standard variable costing. (b) Standard full absorption costing. 20X1 TEXAS, INC. DATA RELATING TO FINISHED GOODS INVENTORY FOR FISCAL YEARS 20XO AND 20X1 20x0 Finished Goods Inventory (in units): Beginning Balance 0 Units Produced 25.000 Units Sold 22,000 Ending Balance 3.000 3.000 27,000 29.000 1,000