Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month with the following unit costs:

Direct materials	$4.60
Direct labor	2.60
Variable overhead	1.30
Fixed overhead*	6.60
Variable marketing cost	1.00

^* Fixed overhead per unit = $316,800 / 48,000 units produced = $6.60

Total fixed factory overhead is $316,800 per month. During October, 46,900 units were sold at a price of $23.5, and fixed marketing and administrative expenses were $124,700.

Required:

1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent.

$fill in the blank 18c64a03707c00e_1 per unit

2. How many units remain in ending inventory? fill in the blank 18c64a03707c00e_2 units

What is the cost of ending inventory using variable costing? $fill in the blank 18c64a03707c00e_3

Feedback

1. Variable costing assigns only unit-level variable manufacturing costs to the cost of the product.

2. How does the beginning inventory balance factor into the calculation of ending inventory? What about units produced versus units sold? What role do those amounts play?

How does the cost per unit factor into the calculation of the cost of ending inventory?

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

Pattison Products, Inc.
Variable-Costing Income Statement
For the Month of October
Sales	$fill in the blank 35703d046fa0ff7_2
Less:
Variable cost of goods sold	fill in the blank 35703d046fa0ff7_4
Variable marketing expense	fill in the blank 35703d046fa0ff7_6
Contribution margin	$fill in the blank 35703d046fa0ff7_7
Less:
Fixed factory overhead	fill in the blank 35703d046fa0ff7_9
Fixed marketing and administrative expenses	fill in the blank 35703d046fa0ff7_11
Operating income	$fill in the blank 35703d046fa0ff7_12

Feedback

Use a contribution margin format income statement that groups costs according to behavior (variable and fixed)

4. What if November production was 48,000 units, costs were stable, and sales were 49,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". $fill in the blank fa36affa1fba061_1

What is operating income for November? $fill in the blank fa36affa1fba061_2