Comp r ehensi v e p r ob l em on unit c o s ts, p r oduct c o s ts.

Overtoom International Nederland BV manufactures and sells metal shelving. It began operations on 1 January 2008. Costs incurred for 2008 (V stands for variable; F stands for fixed) are as follows:

  Direct materials used costs	  €280 000	  V
Direct manufacturing labour costs	60 000	V
Plant energy costs	10 000	V
Indirect manufacturing labour costs	20 000	V
Indirect manufacturing labour costs	32 000	F
Other indirect manufacturing costs	16 000	V
Other indirect manufacturing costs	48 000	F
Marketing, distribution and customer-service costs	245 700	V
Marketing, distribution and customer-service costs	80 000	F
Administrative costs	100 000	F

Variable manufacturing costs are variable with respect to units produced. Variable market- ing, distribution, and customer-service costs are variable with respect to units sold. Stock data are as follows:

Â	Opening 1 January 2008	Closing 31 December 2008
  Direct materials Work in progress Finished goods	  0 kg 0 units 0 units	  2000 kg 0 units ? units

Production in 2008 was 100 000 units. Two kilograms of direct materials are used to make one unit of finished product.

Revenues in 2008 were €873 600. The selling price per unit and the purchase price per kilo- gram of direct materials were stable throughout the year. The company’s ending stock of finished goods is carried at the average unit manufacturing costs for 2008. Finished goods stock, at 31 December 2008, was €41 940.

Required

1 Direct materials stock, total cost, 31 December 2008.

2 Finished goods stock, total units, 31 December 2008.

3 Selling price per unit 2008.

4 Operating profit 2008. Show your computations.