Variable 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 $5.60 3.60 1.80 7.60 1.50 * Fixed overhead per unit = $342,000/45,000 units produced = $7.60 Total fixed factory overhead is $342,000 per month. During October, 43,800 units were sold at a price of $27.5, and fixed marketing and administrative expenses were $110,700. Required: 1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent. $ 11 per unit 2. How many units remain in ending inventory? 1,200 units What is the cost of ending inventory using variable costing? $ 13,200 Feedback Check My Work 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 Less: Variable cost of goods sold Variable marketing expense Contribution margin 1,204,500 481,800 65,700 657,000 Less: Fixed factory overhead 342,000 Fixed marketing and administrative expenses 110,700 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 Less: Variable cost of goods sold Variable marketing expense Contribution margin Less: 1,204,500 481,800 65,700 657,000 Fixed factory overhead 342,000 Fixed marketing and administrative expenses 110,700 Operating income 204,300 Feedback Check My Work Use a contribution margin format income statement that groups costs according to behavior (variable and fixed) 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? If an amount is zero, enter "0". What is operating income for November?