Photo-Dive, Inc., manufactures disposable underwater cameras. During the last calendar year, a total of 270,000 cameras were made, and 274,000 were sold for $8 each. The actual unit cost per camera produced during the year is as follows:
Direct materials ……………………….$2.25
Direct labor …………………………… 1.50
Variable overhead ……………………. 0.65
Fixed overhead ……………………….. 0.70
Total unit cost …………………………$5.10
Research and development expenses amounted to $70,000. The selling expenses consisted of a commission of $0.25 per unit sold and advertising copayments totaling $36,000. Administrative expenses, all fixed, equaled $83,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $30,600 for 6,000 cameras.

Required:
1. Calculate the number of cameras in ending finished goods inventory and their costs.
2. Prepare a cost of goods sold statement for last year.
3. Prepare an absorption-costing income statement for last year.