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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,500 units): Direct materials$183,000 Direct labor232,400 Variable

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

Production costs (19,500 units):

Direct materials$183,000

Direct labor232,400

Variable factory overhead250,000

Fixed factory overhead99,900$765,300

Operating expenses:

Variable operating expenses$120,000

Fixed operating expenses47,100167,100

If 2,000 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.$68,246

b.$78,480

c.$80,554

d.$95,631

image text in transcribed

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,500 units): Direct materials $183,000 Direct labor 232,400 Variable factory overhead 250,000 Fixed factory overhead 99,900 $765,300 Operating expenses: Variable operating expenses $120,000 Fixed operating expenses 47,100 167,100 If 2,000 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. $68,246 Ob. $78,480 Oc. $80,554 Od. $95,631

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