A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,800 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses O $175,000 225,800 263,200 c. $71,752 O d. $83,947 91,400 $121,500 42,100 163,600 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. $60,654 Ob. $68.989 $755,400

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,800 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses O $175,000 225,800 263,200 c. $71,752 O d. $83,947 91,400 $121,500 42,100 163,600 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. $60,654 Ob. $68.989 $755,400

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Description: A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (20,800 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expenses

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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