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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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Absorption Costing, Value of Ending Inventory, Operating Income

Please answer number 4 ony, thank you!!

Absorption Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 57,000 units during the month with the following unit costs: Direct materials $6.00 Direct labor 4.00 Variable overhead 2.00 Fixed overhead* 8.00 Variable marketing cost 1.70 * Fixed overhead per unit = $456,000 / 57,000 units produced = $8 Total 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 unit 2. How many units remain in ending inventory? units What is the cost of ending inventory using absorption costing?
Transcribed Image Text:Absorption Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 57,000 units during the month with the following unit costs: Direct materials $6.00 Direct labor 4.00 Variable overhead 2.00 Fixed overhead* 8.00 Variable marketing cost 1.70 * Fixed overhead per unit = $456,000 / 57,000 units produced = $8 Total 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 unit 2. How many units remain in ending inventory? units What 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 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?
Transcribed Image Text: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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