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Mary's Mugs produces and sells various types of ceramic mugs. The business began operations on January 1, year 1, and its costs incurred during the year include the following.

Variable costs (based on mugs produced):

Direct materials cost$5,500

Direct manufacturing labor costs38,750

Indirect manufacturing costs1,070

Administration and marketing2,430

Fixed costs:Administration and marketing costs12,400

Indirect manufacturing costs4,180

On December 31, year 1, direct materials inventory consisted of 5,500 pounds of material. Production in that year was 22,000 mugs. All prices and unit variable costs remained constant during the year. Sales revenue for year 1 was $79,000. Finished goods inventory was $4,500 on December 31, year 1. Each finished mug requires 0.4 pounds of material.

Required:

a.Compute the direct materials inventory cost, December 31, year 1.(Round your answer to 2 decimal places.)

b.Compute the finished goods ending inventory in units on December 31, year 1.

c.Compute the selling price per unit.(Round your answer to 2 decimal places.)

d.Compute the operating profit (loss) for year 1.

(For all the requirements, do not round intermediate calculations.)

a. Direct materials Inventory? _______

b. Finished goods inventory? _______ units

c. Selling price? _______

d. Operating profit (loss)? _______

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