Houston Houston Office Equipment manufactures and sells metal shelving. It began operations on January 1,2014.

Costs incurred for 2014 are as follows (V stands for variable; F stands for fixed):

Direct materials used	$149,500	V
Direct manufacturing labor costs	31,500	V
Plant energy costs	3,000	V
Indirect manufacturing labor costs	15,000	V
Indirect manufacturing labor costs	12,000	F
Other indirect manufacturing costs	10,000	V
Other indirect manufacturing costs	32,000	F
Marketing, distribution, and customer-service costs	126,000	V
Marketing, distribution, and customer-service costs	48,000	F
Administrative costs	57,000	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, 2014		December 31, 2014
Direct materials	0	lb	1,900	lbs
Work in process	0	units	0	units
Finished goods	0	units	?	units

Production in 2014 was 115,000 units. Two pounds of direct materials are used to make one unit of finished product.

Revenues in 2014 were $583,200.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 2014.

Finished-goods inventory at December 31,2014, was $15,400.

Requirements

1. Calculate direct materials inventory, total cost, December 31,2014.

2. Calculate finished-goods inventory, total units, December 31,2014.

3. Calculate selling price in 2014.

4. Calculate operating income for 2014.

Requirement 1. Calculate direct materials inventory, total cost, December 31,2014.

Determine the formula, then calculate ending direct materials total cost.

		x		=	Ending direct materials total cost
		x		=