Salinas Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2007. Costsincurred for 2007 are as follows (V stands for variable: F stands for fixed):

Direct materials used 140,000 V

Direct manufacturing labor-costs 30,000 V

Plant energy costs 5,000 V

Indirect manufacturing-labor costs 10,000 V

Indirect manufacturing-labor costs 16,000 F

Other indirect manufacturing costs 8,000 V

Other indirect manufacturing costs 24,000 F

Marketing, distribution, and customer-service costs122,850 V

Marketing, distribution, and customer-service costs 40,000 F

Administrative costs 50,000 F

Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, andcustomer-service costs are variable with respect to units sold:

Inventory data are:

Beginning Ending

January 1, 2007 December 31, 2007

Direct materials 0 lb. 2,000 lbs.

Work in process 0 units 0 units

Finished goods 0 units ? Units

Production in 2007 was 100,000 units. Two pounds of direct materials are used to make one unit of finished product.

Revenues in 2007 were P436,800. The selling price per unit and the purchase price per pound of direct materialswere stable throughout the year. The company's ending inventory of finished goods is carried at the average unitmanufacturing costs for 2007. Finished-goods inventory at December 31, 2007, was P20,970.

35 Calculate direct materials inventory, total cost, December 31, 2007.

36 Calculate finished-goods inventory, total units, December 31, 2007.

37 Calculate selling price in 2007.

SP in 2017 =

38 Calculate operating income for 2007.