Subject = Cost Account Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Direct materials $5.00 Direct labor 3.00 Variable overhead 1.50 Fixed overhead* 7.00 Variable marketing cost 1.20 *Fixed overhead per unit = $280,000/40,000 units produced = $7 Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500. 1. Calculate the cost of each unit using variable costing. 2. How many units remain in the ending inventory? What is the cost of ending inventory using variable costing? 3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.

Subject = Cost Account Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Direct materials $5.00 Direct labor 3.00 Variable overhead 1.50 Fixed overhead* 7.00 Variable marketing cost 1.20 *Fixed overhead per unit = $280,000/40,000 units produced = $7 Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500. 1. Calculate the cost of each unit using variable costing. 2. How many units remain in the ending inventory? What is the cost of ending inventory using variable costing? 3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

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