Knowledge Check 01

Excerpt from Areojet Corporation records for month of February:

	Per Unit		Per Month
Selling price	$	200,000
Direct materials used in production		40,000
Direct labor		10,000
Variable manufacturing overhead		2,000
Fixed manufacturing overhead			$	140,000
Variable selling and administrative expenses		20,000
Fixed selling and administrative expenses				40,000

Assuming the variable costing method is used, what is the total manufacturing costs added to work in process during the month of February?

multiple choice

• $52,000

• $80,000

• $87,000

• $122,000