Scranton Refrigeration Corporation began operations at the beginning of the current year. One of the companys products, a compressor, sells for $185 per unit. Information related to the current years activities follows.

Variable costs per unit:
Direct material	$	10
Direct labor		35
Manufacturing overhead		46
Annual fixed costs:
Manufacturing overhead		600,000
Selling and administrative		860,000
Sales and Production activity:
Sales (units)		20,000
Production (units)		24,000
Scranton Refrigeration carries its finished-goods inventory at the average unit cost of production and is subject to a 30% income tax rate. There was no work in process at year-end. 1. Determine the cost of the December 31 finished-goods inventory. 2. Compute Scranton Refrigerations net income for the current year ended December 31.