Variable Costing, Value of Ending Inventory, Operating Income

Pattison Products, Inc., began operations in October and manufactured 44,000 units during the month with the following unit costs:

Direct materials	$5.50
Direct labor	3.50
Variable overhead	1.75
Fixed overhead*	7.50
Variable marketing cost	1.45

^* Fixed overhead per unit = $330,000 / 44,000 units produced = $7.50

Total fixed factory overhead is $330,000 per month. During October, 42,700 units were sold at a price of $26.75, and fixed marketing and administrative expenses were $116,300.

Required:

1. Calculate the cost of each unit using variable 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 variable costing? $_____________________

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
____________	$_________________
Less:
_____________	__________________
_____________	__________________
Contribution margin	$_________________
Less:
______________	___________________
______________	___________________
Operating income	$__________________

4. What if November production was 44,000 units, costs were stable, and sales were 45,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". $________________

What is operating income for November? $________________