A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,700 units): Direct materials $184,400 Direct labor 222,200 Variable factory overhead 260,600 Fixed factory overhead 90,200 $757,400 Operating expenses: Variable operating expenses $132,500 Fixed operating expenses 46,000 178,500 If 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,700 units): Direct materials $184,400 Direct labor 222,200 Variable factory overhead 260,600 Fixed factory overhead 90,200 $757,400 Operating expenses: Variable operating expenses $132,500 Fixed operating expenses 46,000 178,500 If 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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