A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,200 units): Direct materials $174,900 Direct labor 220,700 Variable factory overhead 269,800 Fixed factory overhead 91,800 $757,200 Operating expenses: Variable operating expenses $123,100 Fixed operating expenses 48,600 171,700 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
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,200 units): Direct materials $174,900 Direct labor 220,700 Variable factory overhead 269,800 Fixed factory overhead 91,800 $757,200 Operating expenses: Variable operating expenses $123,100 Fixed operating expenses 48,600 171,700 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (20,200 units):
Direct materials $174,900
Direct labor 220,700
Variable factory
Fixed factory overhead 91,800 $757,200
Operating expenses:
Variable operating expenses $123,100
Fixed operating expenses 48,600 171,700
If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing
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