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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A business operated at 100% capacity during its first month and incurred the following costs:
production costs (10,000 units)
direct materials 80,000
direct labor 120,000
variable facctory overhead 140,000
fixed operating epxneses 40,000
380,000
Â
operating expenses:
variable operating expenses 65,000
fixed operating expenses 25,000
90,000
Â
If 1,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet?
a) $38,000
b $40,500
c) $34,000
d) $47,000
Â
please show calculations
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