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Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month with the following unit costs: Direct materials $4.80 Direct labor 2.80 Variable overhead 1.40 Fixed overhead* 6.80 Variable marketing cost 1.10 * Fixed overhead per unit = $326,400 / 48,000 units produced = $6.80 Total fixed factory overhead is $326,400 per month. During October, 46,900 units were sold at a price of $25, and fixed marketing and administrative expenses were $118,100. Duu

Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month with the following unit costs: Direct materials $4.80 Direct labor 2.80 Variable overhead 1.40 Fixed overhead* 6.80 Variable marketing cost 1.10 * Fixed overhead per unit = $326,400 / 48,000 units produced = $6.80 Total fixed factory overhead is $326,400 per month. During October, 46,900 units were sold at a price of $25, and fixed marketing and administrative expenses were $118,100. Duu

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Variable Costing, Value of Ending Inventory, Operating Income

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Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month with the following unit costs: Direct materials $4.80 Direct labor 2.80 Variable overhead 1.40 Fixed overhead" 6.80 Variable marketing cost 1.10 * Fixed overhead per unit = $326,400 / 48,000 units produced = $6.80 Total fixed factory overhead is $326,400 per month. During October, 46,900 units were sold at a price of $25, and fixed marketing and administrative expenses were $118,100. 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?
Transcribed Image Text:Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month with the following unit costs: Direct materials $4.80 Direct labor 2.80 Variable overhead 1.40 Fixed overhead" 6.80 Variable marketing cost 1.10 * Fixed overhead per unit = $326,400 / 48,000 units produced = $6.80 Total fixed factory overhead is $326,400 per month. During October, 46,900 units were sold at a price of $25, and fixed marketing and administrative expenses were $118,100. 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 48,000 units, costs were stable, and sales were 49,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". What is operating income for November?
Transcribed Image Text: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 48,000 units, costs were stable, and sales were 49,000 units? What is the cost of ending inventory? If an amount is zero, enter "0". What is operating income for November?
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