Pattison Products, Inc., began operations in October and manufactured 49,000 units during the month with the following unit costs:

Direct materials	$5.00
Direct labor	3.00
Variable overhead	1.50
Fixed overhead*	7.00
Variable marketing cost	1.20

^* Fixed overhead per unit = $343,000 / 49,000 units produced = $7

Total fixed factory overhead is $343,000 per month. During October, 47,200 units were sold at a price of $23.00, 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. $

2. How many units remain in ending inventory?

What is the cost of ending inventory using absorption costing? $

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
Gross profit
Less:
Operating income

4. What if November production was 49,000 units, costs were stable, and sales were 50,000 units? What is the cost of ending inventory? $

What is operating income for November? $