A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (20,200 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expenses$120,100Fixed operating expenses40,700160,800If 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 isa. $63,481Ob. $88,472Oc. $74,777Od. $73,340$182,700233,500258,700104,900$779,800

Absorption costing: Absorption costing is also called traditional costing. This method of costing…

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 Fixed operating expenses 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 Oa. $63,481 Ob. $88,472 Oc. $74,777 Od. $73,340 $182,700 233,500 258,700 104,900 $779,800 $120,100 40,700

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 Fixed operating expenses 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 Oa. $63,481 Ob. $88,472 Oc. $74,777 Od. $73,340 $182,700 233,500 258,700 104,900 $779,800 $120,100 40,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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