I am hoping for a step-by-step solution for this problem. (Horngren's Cost Accounting 16th Edition - Chapter 2, number 45)

Atlanta Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as followed (V=variable, F=fixed):

Direct marterials used - 140,000 V Direct manfacturing labor costs - 22,000 V Plant Energy Costs - 5,000 V Indirect Manufacturing labor costs - 18,000 V & 14,000 F Other indirect manufacturing costs - 8,000 V & 26,000 F Marketing & distribution costs - 120,000 V & 43,000 F Admin costs - 54,000 F

Inventory data: Direct materials: beg inv = 0, end inv = 2,300 lbs Work in process: beg inv = 0, end inv = 0 units Finished goods: beg inv = 0, end inv = ?

Production in 2017 was 100,000 units. 2 pounds of direct materials are used for 1 unit. Revenues were 473,200. Selling price and purchase price remained stable throughout the year. Ending inventory of finished goods is carried at average unit manufacturing cost for 2017. Finished goods inventory at December 31, 2017 was 20,970.

1. Calculate direct materials inventory, total cost, December 31, 2017 2. Calculate finished goods inventory, total cost, December 31, 2017 3. Calculate selling price in 2017 4. Calculate operating income for 2017