A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Fixed factory overhead 100,000 $800,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 1,500 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 (20,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Fixed factory overhead 100,000 $800,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 1,500 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business operated at 100% of capacity during its first month and incurred the following costs:
| Production costs (20,000 units): | ||
| Direct materials | $180,000 | |
| Direct labor | 240,000 | |
| Variable factory |
280,000 | |
| Fixed factory overhead | 100,000 | $800,000 |
| Operating expenses: | ||
| Variable operating expenses | $130,000 | |
| Fixed operating expenses | 50,000 | 180,000 |
If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing
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