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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,000 units): Direct materials $171,100 Direct labor

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,000 units): Direct materials $171,100 Direct labor 224,500 Variable factory overhead 268,700 Fixed factory overhead 91,500 $755,800 Operating expenses: Variable operating expenses $120,100 Fixed operating expenses 43,400 163,500 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is Oa. $97,037 Ob. $82,798 Oc. $79,781 Od. $70,121

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