A business operated at 100% of capacity during its first month and incurred the

Question

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,300 units): ? ? ? Direct materials $174,200 ? ? ? Direct labor 231,000 ? ? ? Variable factory overhead 260,200 ? ? ? Fixed factory overhead 95,100 $760,500 Operating expenses: ? ? ? Variable operating expenses $120,500 ? ? ? Fixed operating expenses 43,900 164,400 If 1,800 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

a. $69,686

b. $82,011

c. $59,004

d. $67,433

Explanation / Answer

Amount of inventory that would be reported on the variable costing balance sheet = (174200+231000+260200)/20300*1800= $59001

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