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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,000 units): Direct materials $181,000 Direct labor
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,000 units): | ||
Direct materials | $181,000 | |
Direct labor | 235,000 | |
Variable factory overhead | 258,500 | |
Fixed factory overhead | 95,500 | $770,000 |
Operating expenses: | ||
Variable operating expenses | $128,700 | |
Fixed operating expenses | 46,900 | 175,600 |
If 2,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?
a.$81,053
b.$84,547
c.$99,537
d.$71,020
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