A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,700 units): Direct materials $184,400 Direct labor 222,200 Variable factory overhead 260,600 Fixed factory overhead 90,200 $757,400 Operating expenses: Variable operating expenses $132,500 Fixed operating expenses 46,000 178,500 If 1,600 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?

Question
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,700 units):
Direct materials
$184,400
Direct labor
222,200
Variable factory overhead
260,600
Fixed factory overhead
90,200
$757,400
Operating expenses:
Variable operating expenses
$132,500
Fixed operating expenses
46,000
178,500
If 1,600 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?
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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,700 units): Direct materials $184,400 Direct labor 222,200 Variable factory overhead 260,600 Fixed factory overhead 90,200 $757,400 Operating expenses: Variable operating expenses $132,500 Fixed operating expenses 46,000 178,500 If 1,600 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?

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