Question

Atlanta Office Equipment manufactures and sells metal shelving. It began operations on January​ 1, 2017.

Costs incurred for 2017 are as follows​ (V stands for​ variable; F stands for​ fixed):

Direct materials used	$144,000	V
Direct manufacturing labor costs	46,000	V
Plant energy costs	3,000	V
Indirect manufacturing labor costs	15,000	V
Indirect manufacturing labor costs	17,000	F
Other indirect manufacturing costs	6,000	V
Other indirect manufacturing costs	21,000	F
Marketing, distribution, and customer-service costs	124,000	V
Marketing, distribution, and customer-service costs	41,000	F
Administrative costs	53,000	F

Variable manufacturing costs are variable with respect to units produced. Variable​marketing, distribution, and​ customer-service costs are variable with respect to units sold.

Inventory data are as follows​:

	Beginning:		Ending:
	January 1, 2017		December 31, 2017
Direct materials	0	lb	2,400	lbs
Work in process	0	units	0	units
Finished goods	0	units	?	units

Production in 2017 was 120,000 units. Two pounds of direct materials are used to make one unit of finished product.

Revenues in 2017 were $599,400.

The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. The​ company's ending inventory of finished goods is carried at the average unit manufacturing cost for ​Finished-goods inventory at December​ 31, 2017​, was $18,900.

1.	Calculate direct materials​ inventory, total​ cost, December​ 31, 2017. Ending direct materials X Direct Materials Cost per pound = Ending direct materials total cost. What numbers are used to calculate Ending Direct materials total cost.
2.	Calculate​ finished-goods inventory, total​ units, December​ 31, 2017. Before we calculate the units for ending finished​ goods, we will first calculate the total cost of goods manufactured. ​(If a box is not used in the​ table, leave the box​ empty; do not enter a​ zero.) Manufacturing costs for 120,000 units                                                    Variable         Fixed          Total Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Other indirect manufacturing costs Cost of goods manufactured Now select the labels used to calculate ending finished goods inventory in total​ units, then calculate the finished goods inventory in total units at December​ 31, 20172017. ​(Round intermediary calculations to the nearest cent. Abbreviations​ used: DM​ = direct​ materials, COG​ = cost of​ goods, End​ = Ending.) End Finished goods in $   / Manufacturing cost per unit = Ending finished goods inventory in units. How do you get the numbers to calculate this. Ex. End Finished goods in $ etc.
3.	Calculate selling price in 2017. Determine the formula to calculate selling price. Total revenues / total units sold = Selling Price             How do you get these numbers? The 2017 selling price is $
4.	Calculate operating income for 2017.

Begin preparing the income statement by selecting the labels in the appropriate​ order, then enter the amounts and calculate the operating​ income/(loss). ​(Use a parentheses or a minus sign for an operating loss. For amounts with a​ $0 balance, make sure to enter​ "0" in the appropriate cell. Complete all answer​ boxes.)

Atlanta Office Equipment
Income Statement
For the Year Ended December 31, 2017
	Revenues
	Cost of goods sold:
		Beginning finished goods, Jan. 1, 2017
		Cost of goods manufactured
		Cost of goods available for sale
		Ending finished goods, Dec. 31, 2017
	Gross margin
	Operating costs:
		Marketing, distribution, and customer-service costs
		Administrative costs
	Operating income (loss)

Answer 1