Atlanta Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2014. Costs incurred for 2014 are as follows (V stands for variable; F stands for fixed):

Direct materials used ...............$149,500 V

Direct manufacturing labor costs ...........34,500 V

Plant energy costs ................ 6,000 V

Indirect manufacturing labor costs ...........12,000 V

Indirect manufacturing labor costs ...........17,000 F

Other indirect manufacturing costs ........... 7,000 V

Other indirect manufacturing costs ...........27,000 F

Marketing, distribution, and customer-service costs......126,000 V

Marketing, distribution, and customer-service costs ...47,000 F

Administrative costs ...............58,000 F

Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold. Inventory data are as follows:

Production in 2014 was 115,000 units. Two pounds of direct materials are used to make one unit of finished product.
Revenues in 2014 were $ 540,000. The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. The company’s ending inventory of finished goods is carried at the average unit manufacturing cost for 2014. Finished-goods inventory at December 31, 2014, was $ 15,400.

Required
1. Calculate direct materials inventory, total cost, December 31, 2014.
2. Calculate finished-goods inventory, total units, December 31, 2014.
3. Calculate selling price in 2014.
4. Calculate operating income for2014.

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Direct materials Work in process Finished goods Beginning: January 1. 2014 0lb 0 units O units Ending: December 31, 2014 2300 lbs 0 units ? units