Question Content Area

A business operated at $100\%$ of capacity during its first month and incurred the following costs:

Production costs $(18,200$ units$)$:

Line Item Description Amount Amount

Direct materials $$179,000$

Direct labor $238,600$

Variable factory overhead $261,900$

Fixed factory overhead $95,900$

Total production costs $$775,400$

Operating expenses:

Variable operating expenses $$126,800$

Fixed operating expenses $49,100$

Total operating expenses $175,900$

If $1,900$ 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$.$ $$80,959$

b$.$ $$84,174$

c$.$ $$99,312$

d$.$ $$70,937$