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