Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $5.60 3.60 1.80 Direct labor Variable overhead Fixed overhead Variable marketing cost 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, 43,900 units were sold at a price of $27, and fixed marketing and administrative expenses were $130,100. 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 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started