Answer:
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 $52,500
Explanation:
For computing how much amount is recorded in the balance sheet, first we have to calculate the per unit cost.
The formula to compute the per unit cost is shown below:
= Total production cost ÷ Number of units
where,
Total production cost = Direct labor + Direct material + Variable factory overhead
= 240,000 + $180,000 + 280,000
= $700,000
And, the number of unit is 20,000 units
Now, put these values on the above equation which is equals to
= $700,000 ÷ 20,000
= $35 per unit
After that, multiply the per unit cost with unsold units
In mathematically,
= 1,500 units × $35 per unit
= $52,500
Hence, 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 $52,500
