Rene Inc. has capacity to produce 15,000 units of inventory. It operated at 100% capacity during the second quarter of the current year and provided the following cost data: Cost Data Accounts Amounts Production costs (15,000 units): - Direct materials $150,000 Direct labor 180,000 Variable manufacturing overhead 120,000 Fixed manufacturing overhead 45,000 Total production costs $495,000 Operating expenses: - Variable operating expenses $60,000 Fixed operating expenses 40,000 Total operating expenses $100,000 There was no inventory on hand at the beginning of the quarter. 2,000 units remained unsold at the end of the quarter. The amount of inventory to be reported on the balance sheet at the end of the second quarter under absorption costing method is: Group of answer choices $60,000 $68,000 $79,333 $66,000
Rene Inc. has capacity to produce 15,000 units of inventory. It operated at 100% capacity during the second quarter of the current year and provided the following cost data: Cost Data Accounts Amounts Production costs (15,000 units): - Direct materials $150,000 Direct labor 180,000 Variable manufacturing overhead 120,000 Fixed manufacturing overhead 45,000 Total production costs $495,000 Operating expenses: - Variable operating expenses $60,000 Fixed operating expenses 40,000 Total operating expenses $100,000 There was no inventory on hand at the beginning of the quarter. 2,000 units remained unsold at the end of the quarter. The amount of inventory to be reported on the balance sheet at the end of the second quarter under absorption costing method is: Group of answer choices $60,000 $68,000 $79,333 $66,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rene Inc. has capacity to produce 15,000 units of inventory. It operated at 100% capacity during the second quarter of the current year and provided the following cost data:
Cost Data| Accounts | Amounts |
|---|---|
| Production costs (15,000 units): | - |
| Direct materials | $150,000 |
| Direct labor | 180,000 |
| Variable manufacturing |
120,000 |
| Fixed manufacturing overhead | 45,000 |
| Total production costs | $495,000 |
| Operating expenses: | - |
| Variable operating expenses | $60,000 |
| Fixed operating expenses | 40,000 |
| Total operating expenses | $100,000 |
There was no inventory on hand at the beginning of the quarter. 2,000 units remained unsold at the end of the quarter.
The amount of inventory to be reported on the
Group of answer choices
$60,000
$68,000
$79,333
$66,000
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