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.

$\backslash$table$[[$Variable costs $($based on mugs produced$)$:$,],[$Direct materials cost,$4,250],[$Direct manufacturing labor costs,$23,640],[$Indirect manufacturing costs,$1,140],[$Administration and marketing,$2,480],[$Fixed costs:,$13,000],[$Administration and marketing costs,$4,120]]$

On December $31,$ year $1,$ direct materials inventory consisted of $4,250$ pounds of material. Production in that year was $17,000$ mugs. Al prices and unit variable costs remained constant during the year. Sales revenue for year $1$ was $$51,800.$ Finished goods inventory was $$5,850$ on December $31,$ year $1.$ Each finished mug requires $0\mathrm{.}4$ 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.$)$

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.

$\backslash$table$[[$Variable costs $($based on mugs produced$)$:$,],[$Direct materials cost,$4,250],[$Direct manufacturing labor costs,$23,640],[$Indirect manufacturing costs,$1,140],[$Administration and marketing,$2,480],[$Fixed costs:,$13,000],[$Administration and marketing costs,$4,120],[$Indirect manufacturing costs,$]]$

On December $31,$ year $1,$ direct materials inventory consisted of $4,250$ pounds of material. Production in that year was $17,000$ mugs. Al prices and unit variable costs remained constant during the year. Sales revenue for year $1$ was $$51,800.$ Finished goods inventory was $$5,850$ on December $31,$ year $1.$ Each finished mug requires $0\mathrm{.}4$ 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.$)$

The following data are from the accounting records of Niles Castings for year $2.$

Units produced and sold

Total revenues and costs

Sales revenue

Direct materials costs

Direct labor costs

Variable manufacturing overhead

Fixed manufacturing overhead

Variable marketing and administrative costs

Fixed marketing and administrative costs

$81,000$

$$290,000$

$68,000$

$30,000$

$14,000$

$48,000$

$12,000$

$38,000$

Required:

a$.$ Prepare a gross margin income statement.

b$.$ Prepare a contribution margin income statement.

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Prepare a gross margin income statement.