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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 $174,300 Direct labor
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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 $174,300 Direct labor 221,400 Variable factory overhead 249,500 Fixed factory overhead 103,000 $748,200 Operating expenses: Variable operating expenses $132,300 Fixed operating expenses 43,900 176,200
If 1,800 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.$87,575
b.$70,866
c.$73,658
d.$61,124
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,000 units): | ||
Direct materials | $174,300 | |
Direct labor | 221,400 | |
Variable factory overhead | 249,500 | |
Fixed factory overhead | 103,000 | $748,200 |
Operating expenses: | ||
Variable operating expenses | $132,300 | |
Fixed operating expenses | 43,900 | 176,200 |
If 1,800 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.$87,575
b.$70,866
c.$73,658
d.$61,124
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