Comprehensive problem on unit costs, product costs. Soo Office Equipment manufac-

1.$ 1,400 tures and sells metal shelving. It began operations on January 1, 2009. Costs incurred for 2009 are as follows (V stands for variable; F stands for fixed):

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 2009 was 100,000 units. Two kilograms of direct materials are used to make one unit of finished product.
Revenues in 2009 were $436,800. 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 2009. Finished goods inventory at December 31, 2009, was $20,970.
REQUIRED 1. Calculate direct materials inventory, total cost, December 31, 2009.
2. Calculate finished goods inventory, total units, December 31, 2009.
3. Calculate selling price per unit in 2009.
4. Calculate operating income for 2009 (show your computations).LO1

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Direct materials used costs Direct manufacturing labour costs Plant energy costs Indirect manufacturing labour costs Indirect manufacturing labour costs Other indirect manufacturing costs Other indirect manufacturing costs $140,000 V 30,000 V 5,000 V 10,000 V 16,000 F 8,000 V 24,000 F Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs 122,850 V 40,000 F 50,000 F