Comprehensive problem on unit costs, product costs.

Tampa Office Equipment manufactures 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 $ 144,500 V Direct manufacturing-labor costs 23,500 V Plant energy costs 5,000 V Indirect manufacturing-labor costs 18,000 V Indirect manufacturing-labor costs 16,000 F Other indirect manufacturing costs 8,000 V Other indirect manufacturing costs 23,000 F Marketing, distribution, and customer-service costs 126,000 V Marketing, distribution, and customer-service costs 40,000 F Administrative costs 54,000 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:

Direct Materials: Beginning Jan 1, 2013- 0 lb. Ending Dec 31, 2013- 1,900 lbs. WIP: Beginning- 0 units; End- 0 units

Finished goods 0 units; ? units

Production in 2013 was 106,250 units. Two pounds of direct materials are used to make one unit of finished product.

Revenues in 2007 were $481,250. 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 costs for 2013. Finished-goods inventory at December 31, 2013, was $22,400.

Requirement 1: Calculate direct materials inventory, total cost, December 31, 2013.

Requirement 2: Calculate finished-goods inventory, total units, December 31, 2013.

Requirement 3: Calculate selling price in 2013.

Requirement 4: Calculate operating income for 2013.