ariable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Direct materials $4.20 Direct labor 2.20 Variable overhead 1.10 Fixed overhead* 6.20 Variable marketing cost 0.80 * Fixed overhead per unit = $248,000 / 40,000 units produced = $6.20 Total fixed factory overhead is $248,000 per month. During October, 39,000 units were sold at a price of $22.5, and fixed marketing and administrative expenses were $115,100. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". $fill in the blank 73ea6f08bf90fbc_1 What is operating income for November? $fill in the blank 73ea6f08bf90fbc_2
Variable Costing, Value of Ending Inventory, Operating Income
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs:
| Direct materials | $4.20 |
| Direct labor | 2.20 |
| Variable overhead | 1.10 |
| Fixed overhead* | 6.20 |
| Variable marketing cost | 0.80 |
* Fixed overhead per unit = $248,000 / 40,000 units produced = $6.20
Total fixed factory overhead is $248,000 per month. During October, 39,000 units were sold at a price of $22.5, and fixed marketing and administrative expenses were $115,100.
What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? If an amount is zero, enter "0".
$fill in the blank 73ea6f08bf90fbc_1
What is operating income for November?
$fill in the blank 73ea6f08bf90fbc_2
As per absorption costing, the unit cost per unit does not include the selling or marketing expense. But while calculating the operating income under this method we have to consider both. whether it is fixed or variable.
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