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Absorption Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 50,000 units during the month with the following

Absorption Costing, Value of Ending Inventory, Operating Income

Pattison Products, Inc., began operations in October and manufactured 50,000 units during the month with the following unit costs:

Direct materials $6.00
Direct labor 4.00
Variable overhead 2.00
Fixed overhead* 8.00
Variable marketing cost 1.70

* Fixed overhead per unit = $400,000 / 50,000 units produced = $8

Total fixed factory overhead is $400,000 per month. During October, 48,200 units were sold at a price of $28.50, and fixed marketing and administrative expenses were $124,200.

Required:

1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent. $fill in the blank a5442d063fb1fc5_1 per unit

2. How many units remain in ending inventory? fill in the blank a5442d063fb1fc5_2 units

What is the cost of ending inventory using absorption costing? $fill in the blank a5442d063fb1fc5_3

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

Pattison Products, Inc. Absorption-Costing Income Statement For the Month of October

Cost of goods soldFixed marketing and administrative expensesSalesVariable marketing expenses

$- Select -

Less: Cost of goods soldLess: Fixed marketing and administrative expensesLess: SalesLess: Variable marketing expenses

- Select -
Gross profit $fill in the blank 77b164041fa4f9a_5
Less:

Cost of goods soldFixed overheadSalesVariable marketing expenses

- Select -

Cost of goods soldFixed marketing and administrative expensesFixed overheadSales

- Select -
Operating income $fill in the blank 77b164041fa4f9a_10

4. What if November production was 50,000 units, costs were stable, and sales were 51,000 units? What is the cost of ending inventory? $fill in the blank da93ec00ef98033_1

What is operating income for November? $fill in the blank da93ec00ef98033_2

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