1. A business operated at 100% of capacity during its first month and incurred t

Question

1. A business operated at 100% of capacity during its first month and incurred the following costs:

If 1,900 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.$87,529

b.$62,358

c.$73,944

d.$71,677

Production costs (20,700 units): ??? Direct materials $184,500 ??? Direct labor 237,700 ??? Variable factory overhead 257,200 ??? Fixed factory overhead 101,500 $780,900 Operating expenses: ??? Variable operating expenses $126,200 ??? Fixed operating expenses 46,500 172,700

Explanation / Answer

Calculat amount of inventory under variable costing :

Variable cost of production = (184500+237700+257200)/20700 = 32.82 per unit

Ending inventory = 1900*32.82 = 62358

so answer is b) 62358

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.