ses 255,200 103,100 $132,200 $760,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$176,400
226,100
255,200
103,100
a. $66,434
b. $192,734
c. $76,848
Od. $203,046
$132,200
49,700
$760,800
181,900
181,900
If 2,000 units remain unsold at the end of the month and sales total $1,069,000 for the month, the amount of operating income
reported on the absorption costing income statement would be
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,800 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $176,400 226,100 255,200 103,100 a. $66,434 b. $192,734 c. $76,848 Od. $203,046 $132,200 49,700 $760,800 181,900 181,900 If 2,000 units remain unsold at the end of the month and sales total $1,069,000 for the month, the amount of operating income reported on the absorption costing income statement would be
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