Absorption Costing, Value of Ending Inventory, Operating Income

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.

Required:

Question Content Area

1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent. $fill in the blank e9dfb100cfd0fee_1 per unit

2. How many units remain in ending inventory? fill in the blank e9dfb100cfd0fee_2 units

What is the cost of ending inventory using absorption costing? $fill in the blank e9dfb100cfd0fee_3