Pattison Products, Inc. Absorption-Costing Income Statement For the Month of October Sales Less: Cost of goods sold Gross profit Less: Variable marketing expenses Fixed marketing and administrative expenses Operating income Feedback 7 Check My Work 3. Absorption costing assigns all manufacturing costs (fixed and variable) of products sold as COGS. 4. What if November production was 45,000 units, costs were stable, and sales were 46,000 units? What is the cost of ending inventory? What is operating income for November? Feedback Absorption Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 45,000 units during the month with the following unit costs Direct materials Direct labor Variable overhead Fixed overhead Variable marketing cost $7.00 5.00 2.50 9.00 2.20 Fixed overhead per unit = 405,000 / 45,000 units produced = $9 Total fixed factory overhead is $405,000 per month. During October, 43,600 units were sold at a price of $32.00, and fixed marketing and administrative expenses were $118,600 Required: 1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent. 23.50 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 Feedback Check My Work 1. Absorption costing assigns all manufacturing costs (fixed and variable) to each unit produced 2. Beginning inventoryUnits Produced - Units Sold -Ending Inventory