1. 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	$4.20
   Direct labor	2.20
   Variable overhead	1.10
   Fixed overhead*	6.20
   Variable marketing cost	0.80

   ^* Fixed overhead per unit = $279,000 / 45,000 units produced = $6.20

   Total fixed factory overhead is $279,000 per month. During October, 43,700 units were sold at a price of $24, and fixed marketing and administrative expenses were $121,400.

   Required:

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

   $fill in the blank 66b2a509e02a011_1 per unit

   2. How many units remain in ending inventory? fill in the blank 66b2a509e02a011_2 units

   What is the cost of ending inventory using variable costing? $fill in the blank 66b2a509e02a011_3

   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

   CashFixed costsSalesVariable costs	$- Select -
   Less:
   Fixed factory overheadFixed marketing and administrative expensesSalesVariable cost of goods sold	- Select -
   Fixed factory overheadFixed marketing and administrative expensesSalesVariable marketing expense	- Select -
   Contribution margin	$fill in the blank c86032f5402804f_7
   Less:
   Fixed factory overheadSalesVariable cost of goods soldVariable marketing expense	- Select -
   Fixed marketing and administrative expensesSalesVariable cost of goods soldVariable marketing expense	- Select -
   Operating income	$fill in the blank c86032f5402804f_12

   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". $fill in the blank 9dffdb00904a039_1

   What is operating income for November? $fill in the blank 9dffdb00904a039_2

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