Comprehensive problem on unit costs, product costs. Regina Office Equipment manu¬

factures and sells metal shelving. It began operations on January 1, 2007. Costs incurred for 2007 are as follows (V stands for variable; F stands for fixed):

Direct materials used costs $168,000 V Direct manufacturing labour costs 36,000 V Plant energy costs 6,000 V Indirect manufacturing labour costs 12,000 V Indirect manufacturing labour costs 19,200 F Other indirect manufacturing costs 9,600 V Other indirect manufacturing costs 28,800 F Marketing, distribution, and customer service costs 147,420 V Marketing, distribution, and customer service costs 48,000 F Administrative costs 60,000 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:

Beginning, Ending, January 1, 2007 December 31, 2007 Direct materials 0 kilograms 2,000 kilograms Work in process 0 units 0 units Finished goods 0 units ? units Production in 2007 was 100,000 units. Two kilograms of direct materials are used to make one unit of finished product.

Revenues in 2007 were $524,160. The selling price per unit and the purchase price per kilogram of direct materials were stable throughout the year. The company’s ending inventory of finished goods is carried at the average unit manufacturing costs for 2007. Finished goods inventory, at December 31, 2007, was $25,164.

Required 1. Direct materials inventory, total cost, December 31, 2007 2. Finished goods inventory, total units, December 31, 2007 3. Selling price per unit, 2007 4. Operating income, 2007 (show your computations)