A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $499,200 Production costs (120 units): Direct materials $67,454 Direct labor 17,222 Variable factory overhead 30,139 Fixed factory overhead 28,705 143,520 Operating expenses: Variable operating expenses $5,260 Fixed operating expenses 4,634 9,894 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $397,454 Ob. Ob. $499,080 Oc. $374,489 Od. $402,088

A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $499,200 Production costs (120 units): Direct materials $67,454 Direct labor 17,222 Variable factory overhead 30,139 Fixed factory overhead 28,705 143,520 Operating expenses: Variable operating expenses $5,260 Fixed operating expenses 4,634 9,894 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $397,454 Ob. Ob. $499,080 Oc. $374,489 Od. $402,088

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 (19,800 units): Direct materials $177,000 Direct labor 227,000 Variable factory overhead 261,600 Fixed factory overhead 100,400 $766,000 Operating expenses: Variable operating expenses $132,300 Fixed operating expenses 42,700 175,000 If 1,800 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. $60,498 b. $72,536 Oc. $69,636 O d. $85,545
A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $490,000 Production costs (122 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $65,941 16,836 29,463 28,060 Oc. $389,996 Od. $367,456 Operating expenses: Variable operating expenses Fixed operating expenses 9,844 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $394,087 Ob. $489,878 140,300 $5,753 4,091
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474
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:
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A business operated at 100% of capacity during its first month, with the following results: Sales (103 units) $515,000 Production costs (129 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $69,725 17,802 31,154 29,669 Operating expenses: Variable operating expenses Fixed operating expenses 8,612 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $387,938 Ob. $396,551 Oc. $514,871 Od. $391,410 $5,140 3,472 148,350 20
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials $90,000 $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 Operating expenses: Variable operating expenses $8,000 Fixed operating expenses 1,000 69,000 9,000 What is the amount of the gross profit that would be reported on the absorption costing income statement? a. $21,000 b. $27,900 c. $18,000 d. $18,900
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,700 units): Direct materials $179,300 Direct labor 234,800 Variable factory overhead 268,300 Fixed factory overhead 103,400 $785,800 Operating expenses: Variable operating expenses $124,300 Fixed operating expenses 48,100 172,400 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is Oa. $72,124 Ob. $74,045 Oc. $87,951 Od. $62,636