A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $184,100 Direct labor 222,200 Variable factory overhead 241,500 Fixed factory overhead 104,400 $752,200 Operating expenses: Variable operating expenses $126,900 Fixed operating expenses 46,600 173,500 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:
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $184,100 Direct labor 222,200 Variable factory overhead 241,500 Fixed factory overhead 104,400 $752,200 Operating expenses: Variable operating expenses $126,900 Fixed operating expenses 46,600 173,500 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:
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 (17,100 units): | ||
| Direct materials | $184,100 | |
| Direct labor | 222,200 | |
| Variable factory |
241,500 | |
| Fixed factory overhead | 104,400 | $752,200 |
| Operating expenses: | ||
| Variable operating expenses | $126,900 | |
| Fixed operating expenses | 46,600 | 173,500 |
If 1,700 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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