3. Early in the year, Jane Jackson founded Jackson Engineering Co for the purpose of manufacturing a special plumbing device that she had designed. Shortly after year-end, the company's accountant was injured in an atto accident, and no year-end financial statements were prepared. However, the accountant had correctly determined the year-end inventories at the following amounts. As this was the firs year of operations, there were no beginning inventories. While the accountant was in the hospital, Jackson improperly prepared the following income statement from the company's accounting records (60 marks) Materials Work in process 32.000 Finished goods (4,000 units) 5 $1,000 108.000 $ 625.000 $ 188,000 113.000 Net sales Cost of goods sold Purchases of direct materials Direct labor costs assigned to production Manufacturing overhead applied to production Selling expenses Administrative expenses Total costs Net loss for year 160.000 75.000 135.000 671.000 S_146.00 Jackson was very disappointed in these operating results. She stated, "Not only did we lose more than 500.000 this year but look at our unit production costs. We seld 10.000 units this year at a cost of $671,000 that amounts to a cost of $ 67.10 per unit. I know some of our competitors are able to manufacture similar plumbing devices for about $ 30 per unit. I don't need an accountant to know that this business is a failure". * Prepare a schedule of the cost of finished goods manufactured for the year. As there were no beginning inventories, your schedule will start with "Manufacturing costs assigned to production. Shewa supporting computation for the cost of direct materials used during the year b. Compute the average cost per unit manufactured. (Round your answer to two decimal places.) Prepare a corrected income statement for the year, using the multiple-step format. If the company has carned any operating income, assume an income tax rate of 20 percent. (Omit eamings per share figures.) d Explain whether you agree or disagree with Jackson's remarks that the business is unprofitable and that its unit cost of production is 67.10, according to Jackson) is much higher than that of competitors Caround $ 30). If you disagree with Jackson, explain any errors or shortcomings in her analysis