Question: I need help with question #4 Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 45,000 units

 I need help with question #4 Variable Costing, Value of EndingInventory, Operating Income Pattison Products, Inc., began operations in October and manufactured

I need help with question #4

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 $5.90 3.90 Direct labor Variable overhead 1.95 Fixed overhead* Variable marketing cost 7.90 1.65 * Fixed overhead per unit = $355,500 / 45,000 units produced = $7.90 Total fixed factory overhead is $355,500 per month. During October, 43,800 units were sold at a price of $28.25, and fixed marketing and administrative expenses were $131,500. Required: 1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent. $ 11.75 per unit 2. How many units remain in ending inventory? 1,200 units What is the cost of ending inventory using variable costing? $ 14,100 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 1,237,350 Less: Variable cost of goods sold 514,650 72,270 Variable marketing expense 650,430 Contribution margin Less: Fixed factory overhead 355,500 131,500 Fixed marketing and administrative expenses Operating income $ 163,430 Feedback 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 "O". What is operating income for November

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!