Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIA Essentials Of Internal Auditing Part 1 Exam Review 2023

Authors: S. Rao Vallabhaneni

1st Edition

1119987148, 978-1119987147

More Books

Students also viewed these Accounting questions

Question

=+1.3(b), show that a trifling set is nowhere dense [A15].

Answered: 1 week ago

Question

Define Scientific Management

Answered: 1 week ago

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago