Comprehensive Problem on Unit Costs, Product Costs, Variable and Fixed Costs, and Budgeted Income Statement The Fancher Company makes a single product. Costs are as follows (V stands for variable; F, for fixed):

Production in units 100,000 Costs incurred:

Direct material used $100,000 V Direct labor 70,000 V Power 5,000 V Indirect labor 10,000 V Indirect labor 20,000 F Other factory overhead 8,000 V Other factory overhead 20,000 F Selling expenses 30,000 V Selling expenses 20,000 F Administrative expenses 50,000 F Work-in-process inventory, December 31, 19_1 —

Direct-material inventory, December 31, 191 2,000 Ibs.

Finished-goods inventory, December 31, 191 $ 20,970 Dollar sales were $318,500 in 19_1. There were no beginning inventories in 19_1. The company’s ending inventory of finished goods was carried at the average unit cost of production for 19_1. Direct material prices have been stable throughout the year. Two pounds of direct material are used to make a unit of finished product.

Direct-material inventory, total cost, December 31, 19_1.
. Finished-goods inventory, total units, December 31, 19_1.
. Unit sales price, 19_1.
. Net income, 19_1. Show computations.
(For an additional question regarding these facts, see the next problem.)