Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. $54,000 b. not reported $70,000 20,000 10,000 2,000 d. $70,000 $17,000 1,000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is $102,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Production costs (5,000 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
a. $54,000
b. not reported
$70,000
20,000
10,000
2,000
d. $70,000
$17,000
1,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the
month, the amount of manufacturing margin that would be reported on the absorption
costing income statement is
$102,000
Transcribed Image Text:Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses a. $54,000 b. not reported $70,000 20,000 10,000 2,000 d. $70,000 $17,000 1,000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is $102,000
A business operated at 100% of capacity during its first month and incurred the following
costs:
Production costs (5,000 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$70,000
20,000
10,000
2,000
a. $54,000
b. not reported
$17,000
1,000
$102,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the
month, the amount of manufacturing margin that would be reported on the absorption
costing income statement is
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $70,000 20,000 10,000 2,000 a. $54,000 b. not reported $17,000 1,000 $102,000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, the amount of manufacturing margin that would be reported on the absorption costing income statement is
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education