A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (19,200 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expenses$174,500232,600249,000104,200 $760,300$134,70043,300Fixed operating expenses178,000If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet isO a. $67,318O b. $70,019O c. $58,089O d. $83,079

As per the absorption costing method, the product cost includes fixed and variable manufacturing…

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses 178,000 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $67,318 O b. $70,019 O c. $58,089 O d. $83,079 $174,500 232,600 249,000 104,200 $134,700 43,300 $760,300

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses 178,000 If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $67,318 O b. $70,019 O c. $58,089 O d. $83,079 $174,500 232,600 249,000 104,200 $134,700 43,300 $760,300

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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