Variable Costing, Value of Ending Inventory, Operating IncomePattison Products, Inc., began operations in October and manufactured 49,000 units during the month with the following unit costs:Direct materials$5.90Direct labor3.90Variable overhead1.95Fixed overhead*7.90Variable marketing cost1.65* Fixed overhead per unit = $387,100 / 49,000 units produced = $7.90Total fixed factory overhead is $387,100 per month. During October, 47,800 units were sold at a price of $28.25, and fixed marketing and administrative expenses were $122,500. Required:1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent.11.75 V per unit2. How many units remain in ending inventory?1,200 v unitsWhat is the cost of ending inventory using variable costing?14,100Feedback3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.Pattison Products, Inc.Variable-Costing Income StatementFor the Month of OctoberSales1,350,350Less:Variable cost of goods sold561,650Variable marketing expense78,870Contribution margin709,830Less:Fixed factory overhead387,100Fixed marketing and administrative expenses122,500Operating income200,230Feedback4. What if November production was 49,000 units, costs were stable, and sales were 50,000 units? What is the cost of ending inventory? If an amount is zero, enter "0".What is operating income for November?232,900 V

Name: Variable Costing, Value of Ending Inventory, Operating IncomePattison
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Variable Costing, Value of Ending Inventory, Operating IncomePattison Products, Inc., began operations in October and manufactured 49,000 units during the month with the following unit costs:Direct materials$5.90Direct labor3.90Variable overhead1.95F

Ending inventory is computed by adding the beginning inventory and purchases and then subtracting the sales from the resultant value. Note: Since you have asked Part 4 so we will solve Part 4 for you, if you are required to answer other parts as well, then please repost the question. Compute the ending inventory in units- Ending inventory = Ending inventory of October +Production -Sales=1,200+49,000-50,000=200 Calculate the value of ending inventory for the month of November- Value of ending inventory= Ending inventory in units×Cost per unit=200×$11.75=$2,350 Hence, the value of ending inventory for the month of November is $2,350.