=+Marketing, distribution and customer service costs 48 000 F Administrative costs 56 000 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:

Beginning: 1 January 2015 Ending: 31 December 2015 Direct materials 0 kg 2400 kg Work in process 0 units 0 units Finished goods 0 units ? units Production in 2015 was 123000 units. Two kilograms of direct materials are used to make one unit of finished product.

Revenues in 2015 were $594000. 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 cost for 2015.

Finished goods inventory at 31 December 2015 was $26000.

Required 1 Calculate direct materials inventory, total cost, 31 December 2015.