FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (17,800 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$176,700
236,400
253,700
94,400
$127,600
47,200
$761,200
174,800
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
O a. $78,876
Ob. $64,140
Oc. $66,944
O d. $56,191
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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 (17,800 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $176,700 236,400 253,700 94,400 $127,600 47,200 $761,200 174,800 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 O a. $78,876 Ob. $64,140 Oc. $66,944 O d. $56,191
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