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I need help with the last one. Question #4, operating income. Absorption Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in
I need help with the last one. Question #4, operating income.
Absorption Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 51,000 units during the month with the following unit costs: 2.50 Direct materials $7.00 Direct labor 5.00 Variable overhead Fixed overhead* 9.00 Variable marketing cost * Fixed overhead per unit = $459,000 / 51,000 units produced = $9 2.20 Total fixed factory overhead is $459,000 per month. During October, 49,600 units were sold at a price of $31.50, and fixed marketing and administrative expenses were $122,200. Required: 1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent. $ 23.5 per unit 2. How many units remain in ending inventory? 1,400 units What is the cost of ending inventory using absorption costing? $ 32,900 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 $ Sales 1,562,400 1,165,600 Less: Cost of goods sold 396,800 Gross profit Less: Variable marketing expenses 109,120 Fixed marketing and administrative expenses 122,200 165,480 Operating income $ Feedback 4. What if November production was 51,000 units, costs were stable, and sales were 52,000 units? What is the cost of ending inventory? $ 9,400 What is operating income for November? $ 171,200 xStep by Step Solution
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