Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 42,000 units during the month with the following unit costs: Direct materials $4.30 Direct labor 2.30 Variable overhead 1.15 Fixed overhead* 6.30 Variable marketing cost 0.85 * Fixed overhead per unit = $264,600 / 42,000 units produced = $6.30 Total fixed factory overhead is $264,600 per month. During October, 40,800 units were sold at a price of $25.25, and fixed marketing and administrative expenses were $118,300. Required: Question Content Area 1. Calculate the cost of each unit using variable costing. Round the final answer to the nearest cent. $fill in the blank per unit 2. How many units remain in ending inventory? fill in the blank What is the cost of ending inventory using variable costing? $fill in the blank Question Content Area 3. 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 October $- Select - Less: - Select - - Select - Contribution margin $fill in the blank bd0bc103402801c_7 Less: - Select - - Select - Operating income $fill in the blank bd0bc103402801c_12 Question Content Area 4. What if November production was 42,000 units, costs were stable, and sales were 43,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". $fill in the blank What is operating income for November? $fill in the blank
Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 42,000 units during the month with the following unit costs: Direct materials $4.30 Direct labor 2.30 Variable overhead 1.15 Fixed overhead* 6.30 Variable marketing cost 0.85 * Fixed overhead per unit = $264,600 / 42,000 units produced = $6.30 Total fixed factory overhead is $264,600 per month. During October, 40,800 units were sold at a price of $25.25, and fixed marketing and administrative expenses were $118,300. Required: Question Content Area 1. Calculate the cost of each unit using variable costing. Round the final answer to the nearest cent. $fill in the blank per unit 2. How many units remain in ending inventory? fill in the blank What is the cost of ending inventory using variable costing? $fill in the blank Question Content Area 3. 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 October $- Select - Less: - Select - - Select - Contribution margin $fill in the blank bd0bc103402801c_7 Less: - Select - - Select - Operating income $fill in the blank bd0bc103402801c_12 Question Content Area 4. What if November production was 42,000 units, costs were stable, and sales were 43,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". $fill in the blank What is operating income for November? $fill in the blank
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Variable Costing, Value of Ending Inventory, Operating Income
Pattison Products, Inc., began operations in October and manufactured 42,000 units during the month with the following unit costs:
| Direct materials | $4.30 |
| Direct labor | 2.30 |
| Variable |
1.15 |
| Fixed overhead* | 6.30 |
| Variable marketing cost | 0.85 |
* Fixed overhead per unit = $264,600 / 42,000 units produced = $6.30
Total fixed factory overhead is $264,600 per month. During October, 40,800 units were sold at a price of $25.25, and fixed marketing and administrative expenses were $118,300.
Required:
Question Content Area
1. Calculate the cost of each unit using variable costing. Round the final answer to the nearest cent.
$fill in the blank per unit
2. How many units remain in ending inventory?
fill in the blank
What is the cost of ending inventory using variable costing?
$fill in the blank
Question Content Area
3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.
|
|
$- Select - |
| Less: | |
|
|
- Select - |
|
|
- Select - |
| Contribution margin | $fill in the blank bd0bc103402801c_7 |
| Less: | |
|
|
- Select - |
|
|
- Select - |
| Operating income | $fill in the blank bd0bc103402801c_12 |
Question Content Area
4. What if November production was 42,000 units, costs were stable, and sales were 43,000 units? What is the cost of ending inventory? If an amount is zero, enter "0".
$fill in the blank
What is operating income for November?
$fill in the blank
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