FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Production costs (5,000 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
a. $54,000
b. not reported
$70,000
20,000
10,000
2,000
d. $70,000
$17,000
1,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the
month, the amount of manufacturing margin that would be reported on the absorption
costing income statement is
$102,000
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following
costs:
Production costs (5,000 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$70,000
20,000
10,000
2,000
a. $54,000
b. not reported
$17,000
1,000
$102,000
18,000
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the
month, the amount of manufacturing margin that would be reported on the absorption
costing income statement is
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