A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,700 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $174,600 227,000 261,600 97,300 $121,400 41,300 $760,500 162,700 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is O a. $99,101 O b. $71,191 O c. $84,223 O d. $81,624

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,700 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $174,600 227,000 261,600 97,300 $121,400 41,300 $760,500 162,700 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is O a. $99,101 O b. $71,191 O c. $84,223 O d. $81,624

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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