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.