A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (18,900 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expensesFixed operating expenses171,800If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet isOa. $72,952Ob. $59,310Oc. $62,048Od. $51,913$171,300235,500247,30093,300 $747,400$127,70044,100

Using absorption Costing, all fixed and variable manufacturing costs are included in the product…

Production costs (18,900 units): Direct materials Direct labor $171,300 235,500 247,300 93,300 $747,400 Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $127,700 Fixed operating expenses 44,100 171,800 If 1,500 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. $72,952 Ob. $59,310 Oc. $62,048 Od. $51,913

Production costs (18,900 units): Direct materials Direct labor $171,300 235,500 247,300 93,300 $747,400 Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $127,700 Fixed operating expenses 44,100 171,800 If 1,500 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. $72,952 Ob. $59,310 Oc. $62,048 Od. $51,913

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4E: On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and...

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