Mary's Mugs produces and sells various types of ceramic mugs. The business began operations on January 1, year 1, and its costs incurred during the year include the following.

Variable costs (based on mugs produced):
Direct materials cost	$	2,600
Direct manufacturing labor costs		20,790
Indirect manufacturing costs		1,060
Administration and marketing		2,410
Fixed costs:
Administration and marketing costs		11,900
Indirect manufacturing costs		4,150

On December 31, year 1, direct materials inventory consisted of 2,600 pounds of material. Production in that year was 13,000 mugs. All prices and unit variable costs remained constant during the year. Sales revenue for year 1 was $40,700. Finished goods inventory was $4,400 on December 31, year 1. Each finished mug requires 0.4 pounds of material.

Required:

a. Compute the direct materials inventory cost, December 31, year 1. (Round your answer to 2 decimal places.)

b. Compute the finished goods ending inventory in units on December 31, year 1.

c. Compute the selling price per unit. (Round your answer to 2 decimal places.)

d. Compute the operating profit (loss) for year 1.

(For all the requirements, do not round intermediate calculations.)