1. Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the companys income statement for the year. 2. Assume that the dollar amounts given above are for the equivalent of 30,000 units produced during the year. Compute the average cost per unit for direct materials used, and compute the average cost per unit for rent on the factory building. 3. Assume that In the following year, the company expects to produce 50,000 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory building? (Assume that the direct materials is a variable cost and that the rent is a fixed cost.) 4. As the manager in charge of production costs, explain to the president the reason for any difference in the average costs per unit between (2) and (3) above.

101 360 15096 The following selected account balances for the year ended December 31 are provided for Valenko Company $8,000 $40,000 Cleaning supplies, factory $6,000 $85,000 Inventory balances at the beginning and end of the year were as follows Beginning End of Year of Year $50,000 $40,000 $30,000 $33,000 Finished goods The total manufacturing costs for the year were $675,000; the goods available for sale totalled $720,000; and the cost of goods sold totalled $635,000. 8.50 x 11.00 in