Absorption Costing, Value of Ending Inventory, Operating IncomePlease answer number 4 ony, thank you!! Absorption Costing, Value of Ending Inventory, Operating IncomePattison Products, Inc., began operations in October and manufactured 57,000 units during the month with the following unit costs:Direct materials$6.00Direct labor4.00Variable overhead2.00Fixed overhead*8.00Variable marketing cost1.70* Fixed overhead per unit = $456,000 / 57,000 units produced = $8Total fixed factory overhead is $456,000 per month. During October, 54,800 units were sold at a price of $25.50, and fixed marketing and administrative expenses were $127,400.Required:1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent.per unit2. How many units remain in ending inventory?unitsWhat is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October.Pattison Products, Inc.Absorption-Costing IncomeStatementFor the Month of OctoberGross profitLess:Operating income4. What if November production was 57,000 units, costs were stable, and sales were 58,000 units? What is the cost of ending inventory?What is operating income for November?

Contribution margin is the excess of sales over variable cost.

Gross profit Less: Operating income 4. What if November production was 57,000 units, costs were stable, and sales were 58,000 units? What is the cost of ending inventory What is operating income for November?

Gross profit Less: Operating income 4. What if November production was 57,000 units, costs were stable, and sales were 58,000 units? What is the cost of ending inventory What is operating income for November?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Absorption Costing, Value of Ending Inventory, Operating Income

Please answer number 4 ony, thank you!!

3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October.
Pattison Products, Inc.
Absorption-Costing Income
Statement
For the Month of October
Gross profit
Less:
Operating income
4. What if November production was 57,000 units, costs were stable, and sales were 58,000 units? What is the cost of ending inventory?
What is operating income for November?

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