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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
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. $95,631Step by Step Solution
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