4. Buffalo Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2017 (Click the icon to view the costs incurred during 2017.) 2(Click the icon to view the inventory data.) Revenues in 2017 were $518,400. 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 2017. Finished-goods inventory at December 31, 2017, was $15,400. Read the requirements Requirement 1. Calculate direct materials inventory, total cost, December 31, 2017 Determine the formula, then calculate ending direct materials total cost. (1) (2) Ending direct materials total cost y Requirement 2. Calculate finished-goods inventory, total units, December 31, 2017. Before we calculate the units for ending finished goods, we will first calculate the total cost of goods manufactured. (If a box is not used in the table, leave the box empty; do not enter a zero.) Manufacturing costs for 115,000 units Variable Fixed Total Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Other indirect manufacturing costs Cost of goods manufactured Now select the labels used to calculate ending finished goods inventory in total units, then calculate the finished goods inventory in total units at December 31, 2017. (Round intermediary calculations to the nearest cent. Abbreviations used: DM = direct materials, COG = cost of goods, End = Ending.) (3) Ending finished goods inventory in units (4) + Requirement 3. Calculate selling price in 2017. (Abbreviations used: DM = direct materials, COG = cost of goods.) Determine the formula to calculate selling price. (5) (6) Selling price (Enter your answer to the nearest cent.) The 2017 selling price is per unit. Requirement 4. Calculate operating income for 2017. Begin preparing the income statement by selecting the labels in the appropriate order, then enter the amounts and calculate the operating income/(loss). (Use a parentheses or a minus sign for an operating loss. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Complete all answer boxes.) Buffalo Office Equipment Income Statement For the Year Ended December 31, 2017 (7) Cost of goods sold: (8) (9) (10) (11) (12) Operating costs: (13) (14) Operating income (loss) 1: Data Table Costs incurred for 2017 are as follows (V stands for variable; F stands for fixed): $149,500 V $26,500 V $6,000 V Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Indirect manufacturing labor costs Other indirect manufacturing costs Other indirect manufacturing costs Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs Administrative costs $17,000 V $18,000 F $10,000 V $26.000 F $121,000 V $50,000 F $50,000 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. 2: Data Table Inventory data are as follows: Beginning: January 1, 2017 O lb Ending: December 31, 2017 Direct materials 2,200 lbs O units Work in process Finished goods O units 0 units ? units Production in 2017 was 115,000 units. Two pounds of direct materials are used to make one unit of finished product. 3: Requirements 1. Calculate direct materials inventory, total cost, December 31, 2017. 2. Calculate finished-goods inventory, total units, December 31, 2017. 3. Calculate selling price in 2017. 4.Calculate operating income for 2017
