Course: Cost Management for Controllership

4. C3.18.04.ALGO (Algorithmic) variable Costing, value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 41,000 units during the month with the following unit costs: Direct materials $5.70 Direct labor 3.70 variable overhead 1.85 Fixed overhead' 7.70 variable marketing cost 1.55 " Fixed overhead per unit = $315,700 ,1 41,000 units produced = $7.70 Total xed factory overhead is $315,700 per month. During October, 39,800 units were sold at a price of $28.25, and xed marketing and administrative expenses were $111,300. Required: 1. Calculate the cost of each unit using variable costing. Round your nal 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 variablecosting 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. WhatifNovember production was 41,000 units, costs were stable. and sales were 42,000 units? What is the cost of ending inventory? If an amount is zero. enter '0'. $ What is operating income for November? $