A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $183,900 Direct labor 221,800 Variable factory overhead 259,300 Fixed factory overhead 92,000 $757,000 Operating expenses: Variable operating expenses $125,200 Fixed operating expenses 47,900 173,100 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $63,194 Ob. $71.915 Oc. $88,360 Od. $75,069

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $183,900 Direct labor 221,800 Variable factory overhead 259,300 Fixed factory overhead 92,000 $757,000 Operating expenses: Variable operating expenses $125,200 Fixed operating expenses 47,900 173,100 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $63,194 Ob. $71.915 Oc. $88,360 Od. $75,069

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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