Beha Carlton Manufacturing Company provided the following details about operations in February: Purchases of raw materials. Maintenance, factory Direct labour. Depreciation, factory equipment Indirect materials, factory. Selling and administrative salaries Utilities, factory. Sales commissions. Insurance, factory equipment. Depreciation, sales equipment.. Advertising expenses.. Rent, factory building. $130,000 37,000 32,500 55.000 3,000 42,500 26.000 17.500 I 4,000 20.000 107,500 ? The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows: Raw materials Work in process. Finished goods. Beginning End of of Month Month $25,000 ? 24,000 ? 15,000 ? Raw materials used in production cost $135,000, total overhead costs for the year were $170,000, the goods available for sale totalled $360,000, and the cost of goods sold totalled $317,500. Required: 1. 2. 3. 4. Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the company's income statement for the year. Assume that the dollar amounts given above are for the equivalent of 15,000 units pro- duced 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. Assume that in the following year the company expects to produce 20,000 units. What av- erage cost per unit and total cost would you expect to be incurred for direct materials, and for rent on the factory building? Direct materials are a variable cost and rent is a fixed cost. 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.