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Accounting
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs(10,000 units): Direct materials $170,000 Direct labor 360,000 Variable factory overhead 190,000 Fixed factory overhead 50,000 $770,000 Operating expenses: Variable operating expenses $60,000 Fixed operating expenses 18,000 78,000 If 500 units remain unsold at the end of the month what is the amount of inventor that would be reported on the variable costing balance sheet? a. $38,500 b. $42,500 c. $36,000 d. $41,500

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs(10,000 units): Direct materials $170,000 Direct labor 360,000 Variable factory overhead 190,000 Fixed factory overhead 50,000 $770,000 Operating expenses: Variable operating expenses $60,000 Fixed operating expenses 18,000 78,000 If 500 units remain unsold at the end of the month what is the amount of inventor that would be reported on the variable costing balance sheet? a. $38,500 b. $42,500 c. $36,000 d. $41,500

FINANCIAL ACCOUNTING
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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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs(10,000 units): Direct materials $170,000 Direct labor 360,000 Variable factory overhead 190,000 Fixed factory overhead 50,000 $770,000 Operating expenses: Variable operating expenses $60,000 Fixed operating expenses 18,000 78,000 If 500 units remain unsold at the end of the month what is the amount of inventor that would be reported on the variable costing balance sheet? a. $38,500 b. $42,500 c. $36,000 d. $41,500
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs(10,000 units): Direct materials $170,000 Direct labor 360,000 Variable factory overhead 190,000 Fixed factory overhead 50,000 $770,000 Operating expenses: Variable operating expenses $60,000 Fixed operating expenses 18,000 78,000 If 500 units remain unsold at the end of the month what is the amount of inventor that would be reported on the variable costing balance sheet? a. $38,500 b. $42,500 c. $36,000 d. $41,500
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