21.

1. Question Content Area

   A business operated at 100% of capacity during its first month and incurred the following costs:

   Production costs (19,800 units):
   Direct materials	$178,700
   Direct labor	221,100
   Variable factory overhead	253,400
   Fixed factory overhead	99,700	$752,900
   Operating expenses:
   Variable operating expenses	$130,500
   Fixed operating expenses	40,900	171,400

   If 1,600 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.$63,329

   b.$74,691

   c.$52,800

   d.$60,840

22.

1. Question Content Area

   A business operated at 100% of capacity during its first month and incurred the following costs:

   Production costs (19,500 units):
   Direct materials	$176,500
   Direct labor	221,700
   Variable factory overhead	249,000
   Fixed factory overhead	100,700	$747,900
   Operating expenses:
   Variable operating expenses	$126,500
   Fixed operating expenses	46,000	172,500

   If 1,600 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.$53,104

   b.$61,360

   c.$63,483

   d.$75,520