Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs:
Direct materials $5.00
Direct labor 3.00
Variable overhead 1.50
Fixed overhead 7.00
Variable marketing cost 1.20
Fixed overhead per unit 1.20
Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500.
Required:
1. Calculate the cost of each unit using absorption costing.
2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing?
3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October.

Answer:

Following are the responses to the given question:

Explanation:

For question 1:

Calculating the cost per unit:

[tex]\text{Direct material}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$5\\\\\text{Direct labor} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$3\\\\\text{Variable overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$1.5\\\\\text{Fixed overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$7\\\\\text{Cost per unit}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$16.5\\\\[/tex]

For question 2:

Calculating the ending inventory units:

[tex]= \text{Beginning inventory + units produced - ending inventory}\\\\= 0+40,000-38,400\\\\= 1600\ units\\\\[/tex]

Calculating the cost for the Ending inventory:

[tex]=1600\ units \times \$16.5\\\\=\$26,400\\\\[/tex]

For question 3:

Calculating the absorption costing for the income statement:

Particular                                             Amount

Sales [tex](38,400\times \$24)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$921,600[/tex]

-COGS[tex](38,400\times \$16.5)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$633,600[/tex]

Gross profit                                          [tex]\$288,000[/tex]

Cost of variable marketing  [tex](\$1.2\times 38,400)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$46,080[/tex]

marketing and administrative costs are fixed [tex]\$130,500[/tex]

Net income                                            [tex]\$111,420[/tex]

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Required:
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Roger is hired by an international HR consulting firm as its Outplacement Counselor. Prior to receiving extensive training on the company's copyrighted techniques and programs, Roger is asked to agree in his employment contract that he will not work as a trainer for a rival outplacement company in a specified list of states for a period of one year from the time he quits or his employment will be terminated. This best exemplifies a _____. Group of answer choices

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define accounting ?
​

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:
Beginning inventory, January 1: $5000
Net sales: $79,000
Net purchases: $77,000
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A) $18,800.
B) $82,000.
C) $15,800.
D) $63,200.
E) $15,400.

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Discuss various factors that must be considered on the warehouse location decisions? ​

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1,170 labor hours 740 labor hours 430 labor hours
7,000 machine hours 2,900 machine hours 4,100 machine hours

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doesn't make any sense. What should have Henry done
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He should have multiplied the cost to
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f. Since Khloe imports product from overseas, customs duty and shipping to the central location
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answered - expert verified
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