business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,900 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $171,400 224,800 243,400 91,400 $731,000 $125,800 46,800 172,600 f 1,800 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a $69,619 b. b. 560,912 $86,057 2572895

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....
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A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (18,900 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$171,400
224,800
243,400
91,400 $731,000
$125,800
46,800
172,600
If 1,800 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 $69,619
b. 560,912
$86,057
d. $72,895
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,900 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $171,400 224,800 243,400 91,400 $731,000 $125,800 46,800 172,600 If 1,800 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 $69,619 b. 560,912 $86,057 d. $72,895
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