A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $42,500 85,000 47,500 12,500 a. $5,250 Ob. $6,210 Oc. $5,760 Od. $5,625 Operating expenses: Variable operating expenses Fixed operating expenses If 75 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is $187,500 $15,000 4,500 19,500

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $42,500 85,000 47,500 12,500 a. $5,250 Ob. $6,210 Oc. $5,760 Od. $5,625 Operating expenses: Variable operating expenses Fixed operating expenses If 75 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is $187,500 $15,000 4,500 19,500

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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