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 O b. $64,140 O c. $66,944 O d. $56,191

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 O b. $64,140 O c. $66,944 O d. $56,191

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Description: A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (17,800 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expenses

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 2E: During the month, a company with no departmentalization incurred costs of 45,000 for materials,...

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