Variable Costing, Value of Ending Inventory, Operating Income

Pattison Products, Inc., began operations in October and manufactured $40,000$ units during the month with the following unit costs:

Direct materials $$5\mathrm{.}00$

Direct labor $3\mathrm{.}00$

Variable overhead $1\mathrm{.}50$

Fixed overhead$*7\mathrm{.}00$

Variable marketing cost $1\mathrm{.}20$

$*$ Fixed overhead per unit $=$ $$280,000/40,000$ units produced $=$ $$7.$

Total fixed factory overhead is $$280,000$ per month. During October, $38,400$ units were sold at a price of $$24,$ and fixed marketing and administrative expenses were $$130,500.$

Required:

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

$2.$ What is the cost of ending inventory using varial costing?

$3.$ Prepare the variable costing income statement.

$4.$ What if NOvember production was $40,000$ units, costs were stable, and sales were $41,000$ units? What is the cost of ending inventory? What is the operating income for November? Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent.

$

$x$ per unit

How many units remain in ending inventory?

units

What is the cost of ending inventory using variable costing?

$

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

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What if November production was $40,000$ units, costs were stable, and sales were $41,000$ units? What is the cost of ending inventory?