A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units) Direct materials $ 70,000 Direct labor $ 20,000 Variable factory overhead $ 10,000 Fixed factory overhead $2,000 $ 1,02,000 Operating expenses: Variable operating expenses $ 17,000 Fixed operating expenses $1,000 $ 1,800 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...
icon
Related questions
Question

please find answer

A business operated at 100% of capacity during its first
month and incurred the following costs:
Production costs (5,000 units)
Direct materials
$ 70,000
Direct labor
$ 20,000
Variable factory overhead
$ 10,000
Fixed factory overhead
$2,000
$ 1,02,000
Operating expenses:
Variable operating expenses
$ 17,000
Fixed operating expenses
$1,000
$ 1,800
If 1,000 units remain unsold at the end of the month and
sales total $150,000 for the month, what would be the
amount of income from operations reported on the
variable costing income statement?
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units) Direct materials $ 70,000 Direct labor $ 20,000 Variable factory overhead $ 10,000 Fixed factory overhead $2,000 $ 1,02,000 Operating expenses: Variable operating expenses $ 17,000 Fixed operating expenses $1,000 $ 1,800 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,