A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,150 units): Direct materials $178,408 Direct labor $235,844 Variable factory overhead $242,838 Fixed factory overhead $97,128 $754,218 Operating expenses: Variable operating expenses $128,056 Fixed operating expenses $40,020 $168,076 If 1,740 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? a. $79,642 b. $56,741 c. $65,129 d. $67,799

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,150 units): Direct materials $178,408 Direct labor $235,844 Variable factory overhead $242,838 Fixed factory overhead $97,128 $754,218 Operating expenses: Variable operating expenses $128,056 Fixed operating expenses $40,020 $168,076 If 1,740 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? a. $79,642 b. $56,741 c. $65,129 d. $67,799

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

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