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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 $176,200 Direct labor
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,000 units): Direct materials $176,200 Direct labor 223,200 Variable factory overhead 244,100 Fixed factory overhead 91,400 $734,900 Operating expenses: Variable operating expenses $130,100 Fixed operating expenses 43,700 173,800 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 Oa. $90,870 Ob. $64,350 Oc. $77,360 Od. $73,494
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