A business operated at 100 of capacity during its first


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

Production costs (10,000 units):

Direct materials                                                       $140,000

Direct labor                                                                  40,000

Variable factory overhead                                        20,000

Fixed factory overhead                                               4,000     $204,000

Operating expenses:

Variable operating expenses                                   $34,000

Fixed operating expenses                                             2,000      36,000

If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what would be the amount of inventory that would be reported on the variable costing balance sheet?

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Financial Accounting: A business operated at 100 of capacity during its first
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