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BuffaloBuffalo Office Equipment manufactures and sells metal shelving. It began operations on January 1, 20172017. LOADING...

(Click the icon to view the costs incurred during

20172017.)

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(Click the icon to view the inventory data.)

Revenues in

20172017

were

$ 604 comma 800$604,800.

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

20172017.

Finished-goods inventory at December 31,

20172017,

was

$ 15 comma 400$15,400.

Read the requirements

LOADING...

.

Costs incurred for

20172017

are as follows (V stands for variable; F stands forfixed):

Direct materials used	$149,500	V
Direct manufacturing labor costs	35,000	V
Plant energy costs	6,000	V
Indirect manufacturing labor costs	10,000	V
Indirect manufacturing labor costs	16,000	F
Other indirect manufacturing costs	8,500	V
Other indirect manufacturing costs	28,000	F
Marketing, distribution, and customer-service costs	122,000	V
Marketing, distribution, and customer-service costs	48,000	F
Administrative costs	56,000	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	2,200	lbs
Work in process	0	units	0	units
Finished goods	0	units	?	units

Production in

20172017

was

115 comma 000115,000

units. Two pounds of direct materials are used to make one unit of finished product.

Requirement 1. Calculate direct materials inventory, total cost, December 31,

20172017.

Determine the formula, then calculate ending direct materials total cost.

		x		=	Ending direct materials total cost
		x		=

Requirement 2. Calculate finished-goods inventory, total units, December 31,

20172017.

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 115,000 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.)

				Ending finished goods
	/		=	inventory in units
	/		=

Requirement 3. Calculate selling price in

20172017.

(Abbreviations used: DM = direct materials, COG = cost of goods.)

Determine the formula to calculate selling price.

/

)

=

Selling price

(Enter your answer to the nearest cent.)

The 2017 selling price is $

per unit.

Requirement 4. Calculate operating income for

20172017.

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.)

Buffalo Office Equipment
Income Statement
For the Year Ended December 31, 2017
	Cost of goods sold:
	Operating costs:
	Operating income (loss)

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