Pattison Products, Inc., began operations in October and manufactured 52,000 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 = $416,000 / 52,000 units produced = $8

Total fixed factory overhead is $416,000 per month. During October, 50,000 units were sold at a price of $27.00, and fixed marketing and administrative expenses were $117,400.

Required:

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

2. How many units remain in ending inventory? units

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 52,000 units, costs were stable, and sales were 53,000 units? What is the cost of ending inventory? $

What is operating income for November? $