Costs incurred for

2019

are as follows (V stands for variable; F stands for fixed):

Direct materials used costs	$143,000	V
Direct manufacturing labour costs	33,000	V
Plant energy costs	7,000	V
Indirect manufacturing labour costs	17,000	V
Indirect manufacturing labour costs	16,000	F
Other indirect manufacturing costs	11,000	V
Other indirect manufacturing costs	26,000	F
Marketing, distribution, and customer-service costs	123,000	V
Marketing, distribution, and customer-service costs	42,000	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 as follows:

	Beginning,		Ending,
	January 1, 2019		December 31, 2019
Direct materials	0	kilograms	2,100	kilograms
Work in process	0	units	0	units
Finished goods	0	units	?	units

Production in 2019 was 110,000 units. Two kilograms of direct materials is used to make one unit of finished product.

Revenues in 2019 were $460,000.

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 2019. Finished goods inventory at December 31, 2019, was $23,000.

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

2019.

Determine the formula to calculate the total cost of direct materials inventory at December 31,

2019.

x

=

Ending direct materials total cost