Use the following information to compute the cost of direct materials used for the current year. (Assume no indirect materials.) January 1 December 31.
Inventories Raw materials inventory $ 6,900 $ 11,600
Work in process inventory 12,600 12,000
Finished goods inventory 9,700 7,400
Activity during current year
Materials purchased $ 133,500
Direct labor 104,000
Factory overhead 46,500
Cost of Direct Material Used is Computed as:

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.