FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (20,200 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
$120,100
Fixed operating expenses
40,700
160,800
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. $63,481
Ob. $88,472
Oc. $74,777
Od. $73,340
$182,700
233,500
258,700
104,900
$779,800
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