Question
A business operates at 100% of capacity during its first month and incurs the following costs: Production costs (20,000 units): Direct materials $180,000 Direct labor
A business operates at 100% of capacity during its first month and incurs the following costs:
Production costs (20,000 units): | ||
---|---|---|
Direct materials | $180,000 | |
Direct labor | 240,000 | |
Variable factory overhead | 280,000 | |
Fixed factory overhead | 100,000 | $800,000 |
Operating expenses: | ||
Variable operating expenses | $130,000 | |
Fixed operating expenses | 50,000 | 180,000 |
If 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
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