Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 47,000 units during the month with the following unit costs: Direct materials $4.80 Direct labor 2.80 Variable overhead 1.40 Fixed overhead* 6.80 Variable marketing cost 1.10 * Fixed overhead per unit = $319,600 / 47,000 units produced = $6.80 Total fixed factory overhead is $319,600 per month. During October, 46,000 units were sold at a price of $24.5, and fixed marketing and administrative expenses were $117,600. Required: 1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent. $fill in the blank ce3411029f88017_1 per unit 2. How many units remain in ending inventory? fill in the blank ce3411029f88017_2 units What is the cost of ending inventory using variable costing? $fill in the blank ce3411029f88017_3 3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October. Pattison Products, Inc. Variable-Costing Income Statement For the Month of October $fill in the blank Less: fill in the blank fill in the blank Contribution margin $fill in the blank Less: fill in the blank fill in the blank Operating income $fill in the blank 4. What if November production was 47,000 units, costs were stable, and sales were 48,000 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Variable Costing, Value of Ending Inventory, Operating Income

Pattison Products, Inc., began operations in October and manufactured 47,000 units during the month with the following unit costs:

Direct materials	$4.80
Direct labor	2.80
Variable overhead	1.40
Fixed overhead^*	6.80
Variable marketing cost	1.10

^* Fixed overhead per unit = $319,600 / 47,000 units produced = $6.80

Total fixed factory overhead is $319,600 per month. During October, 46,000 units were sold at a price of $24.5, and fixed marketing and administrative expenses were $117,600.

Required:

1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent.

$fill in the blank ce3411029f88017_1 per unit

2. How many units remain in ending inventory?
fill in the blank ce3411029f88017_2 units

What is the cost of ending inventory using variable costing?
$fill in the blank ce3411029f88017_3

3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October.

Pattison Products, Inc.
Variable-Costing Income Statement
For the Month of October
	$fill in the blank
Less:
	fill in the blank
	fill in the blank
Contribution margin	$fill in the blank
Less:
	fill in the blank
	fill in the blank
Operating income	$fill in the blank

4. What if November production was 47,000 units, costs were stable, and sales were 48,000 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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