Pattison Products, Inc., began operations in October and manufactured 56,000 units during the month with the following unit costs:

Direct materials	$7.00
Direct labor	5.00
Variable overhead	2.50
Fixed overhead*	9.00
Variable marketing cost	2.20

^* Fixed overhead per unit = $504,000 / 56,000 units produced = $9

Total fixed factory overhead is $504,000 per month. During October, 54,600 units were sold at a price of $30.00, and fixed marketing and administrative expenses were $127,500.

Required:

1. Calculate the cost of each unit using absorption costing. Round your final answer to the nearest cent. $fill in the blank 961181fadffa061_1 per unit

2. How many units remain in ending inventory? fill in the blank 961181fadffa061_2 units

What is the cost of ending inventory using absorption costing? $fill in the blank 961181fadffa061_3

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1. Absorption costing assigns all manufacturing costs (fixed and variable) to each unit produced.

2. Beginning inventory + Units Produced Units Sold = Ending inventory

Cost per unit x total units not sold = cost of ending inventory.

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	$fill in the blank fe5a7d011f9efdd_2
Less: Cost of goods sold	fill in the blank fe5a7d011f9efdd_4
Gross profit	$fill in the blank fe5a7d011f9efdd_5
Less:
Variable marketing expenses	fill in the blank fe5a7d011f9efdd_7
Fixed marketing and administrative expenses	fill in the blank fe5a7d011f9efdd_9
Operating income	$fill in the blank fe5a7d011f9efdd_10

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3. Absorption costing assigns all manufacturing costs (fixed and variable) of products sold as COGS.

4. What if November production was 56,000 units, costs were stable, and sales were 57,000 units? What is the cost of ending inventory? $fill in the blank 5f1937fb7027022_1

What is operating income for November? $fill in the blank 5f1937fb7027022_2