$45,000 Direct materials Production labor 35,000 Bookkeeper salary Factory utilities 28,000 18,500 Office rent 12,000 Factory supervisor salary 9,600 Machine maintenance contract 7,500 Under absorption costing, what is the inventory amount shown on the balance sheet at December 31, Year 1? a. $155,600 b. $115,600 c. $98,500 d. $80,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Queen Sales, Inc. has just completed its first year of operations. The company has not had any sales

to date. Queen has incurred the following costs associated with its production as of December 31, Year 1:

 

$45,000
Direct materials
Production labor
35,000
Bookkeeper salary
Factory utilities
28,000
18,500
Office rent
12,000
Factory supervisor salary
9,600
Machine maintenance contract
7,500
Under absorption costing, what is the inventory amount shown on the balance sheet at December 31, Year 1?
a. $155,600
b. $115,600
c. $98,500
d. $80,000
Transcribed Image Text:$45,000 Direct materials Production labor 35,000 Bookkeeper salary Factory utilities 28,000 18,500 Office rent 12,000 Factory supervisor salary 9,600 Machine maintenance contract 7,500 Under absorption costing, what is the inventory amount shown on the balance sheet at December 31, Year 1? a. $155,600 b. $115,600 c. $98,500 d. $80,000
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