Dax Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2021. Costs incurred for 2021 are as follows (V stands for variable; F stands for fixed):

Direct materials used $ 150,000 V

Direct manufacturing labor costs 40,000 V

Plant energy costs 6,000 V

Indirect manufacturing labor costs 12,000 V

Indirect manufacturing labor costs 23,000 F

Other indirect manufacturing costs 10,000 V

Other indirect manufacturing costs 27,000 F

Marketing, distribution, and customer-service costs 126,000 V

Marketing, distribution, and customer-service costs 44,000 F

Administrative costs 58,000 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: January 1, 2021Ending: December 31, 2021

Direct materials 0 Kg 2,300 Kg

Work in process 0 units 0 units

Finished goods 0 units ? units

Production in 2021 was 150,000 units. Two kilo grams of direct materials are used to make one unit of finished product.

Revenues in 2021 were $560,000. The selling price per unit and the purchase price per Kg of direct materials were stable throughout the year. The companys ending inventory of finished goods is carried at the average unit manufacturing cost for 2021. Finished-goods inventory at December 31, 2021, was $18,000.

Required:

1. Calculate direct materials inventory, total cost, December 31, 2021.

2. Calculate finished-goods inventory, total units, December 31, 2021.

3. Calculate the cost of sales and unit selling price in 2021.

4. Prepare the income statement, given tax rate is 15% for 2021.