business operated at 100% of capacity during its first month and incurred the following costs: roduction costs (17,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $125,200 Fixed operating expenses 41,600 166,800 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is a. $78,000 b. $92,558 c. $109,244 d. $89,840 $176,300 236,000 258,500 101,900 $772,700

business operated at 100% of capacity during its first month and incurred the following costs: roduction costs (17,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $125,200 Fixed operating expenses 41,600 166,800 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is a. $78,000 b. $92,558 c. $109,244 d. $89,840 $176,300 236,000 258,500 101,900 $772,700

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, with the following results: Sales (107 units) $577,800 Production costs (134 units): Direct materials $78,221 Direct labor 19,971 Variable factory overhead 34,950 Fixed factory overhead 33,286 166,428 Operating expenses: Variable operating expenses $5,953 Fixed operating expenses 4,852 10,805 The amount of gross profit that would be reported on the absorption costing income statement is a.$577,666 b.$434,101 c.$444,906 d.$438,953
Walsh Company manufactured 30,000 units during July. There were no units in inventory on July 1. Costs and expenses for July were as follows: Total Num Total Cost Number of Units Unit Cost Manufacturing costs: Variable $660,000 30,000 $22.00 Fixed 300,000 30,000 10.00 Total 960,000 Selling and administrative expenses: Variable $200,000 Fixed 160,000 Total. $360,000 If the company sells 25,000 units at $75 (units manufactured exceed units sold), prepare an income statement for July using: b. Variable costing
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