A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $124,500 Fixed operating expenses 48,400 172,900 If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $69,135 O b. $58,416 Oc. $66,262 Od. $81,135 $182,900 234,400 261,900 91,100 $770,300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (18,600 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$182,900
234,400
261,900
91,100 $770,300
$124,500
48,400
172,900
If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is
O a. $69,135
Ob. $58,416
Oc. $66,262
Od. $81,135
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $182,900 234,400 261,900 91,100 $770,300 $124,500 48,400 172,900 If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is O a. $69,135 Ob. $58,416 Oc. $66,262 Od. $81,135
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