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

 

Transcribed Image Text:

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,000 units): Direct materials $174,800 Direct labor 236,000 Variable factory overhead 252,700 Fixed factory overhead 90,300 $753,800 Operating expenses: Variable operating expenses $122,000 Fixed operating expenses 44,400 166,400 If 1,500 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 business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,000 units): Direct materials $174,800 Direct labor 236,000 Variable factory overhead 252,700 Fixed factory overhead 90,300 $753,800 Operating expenses: Variable operating expenses $122,000 Fixed operating expenses 44,400 166,400 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is

Answer rating: 100% (QA)

Inventory Valuation under Variable Costing Under variable costing only variable production costs are ... View the full answer