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. variablemarketing, 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.
calculate direct materials inventory, total cost, december31, 2017.