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	$5.30
Direct labor	3.30
Variable overhead	1.65
Fixed overhead*	7.30
Variable marketing cost	1.35

^* Fixed overhead per unit = $328,500 / 45,000 units produced = $7.30

Total fixed factory overhead is $328,500 per month. During October, 43,800 units were sold at a price of $27.75, and fixed marketing and administrative expenses were $122,400.

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? $

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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
?
Contribution margin	$
Less:
Fixed factory overhead
Fixed marketing and administrative expenses
Operating income	$

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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? $