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Consider the following information for Sanchez Corporation for the year ended December 31, 2022. Depreciation expenseAdministrative office $100,000 Depreciation expense -Plant and equipment 140,000 Property,

Consider the following information for Sanchez Corporation for the year ended December 31, 2022.

Depreciation expenseAdministrative office $100,000

Depreciation expense -Plant and equipment 140,000

Property, plant and equipment 6,000,000

Direct laborWages 600,000

Direct materials inventory, Dec. 31, 2022 50,000

Direct materials inventory, Jan. 1, 2022 40,000

Direct materials purchases 300,000

Finished goods inventory, Dec. 31, 2022 60,000

Finished goods inventory, Jan. 1, 2022 70,000

Heat, light & power - Plant 80,000

Indirect labor 90,000

Property taxesPlant 70,000

Sales representative's salaries 200,000

Cash 500,000

Retained earnings 2,000,000

Supervisor's salary-Plant 90,000

SuppliesAdministrative office 20,000

SuppliesPlant 50,000

Accounts payable 500,000

Accounts receivable 800,000

Work-in-Process inventory, Dec. 31, 2022 50,000

Work-in-Process inventory, Jan. 1, 2022 40,000

Required:

  1. Determine the cost of goods manufactured and the cost of goods sold for 2022.
  2. If 200,000 units were sold, what is the cost of goods manufactured per unit?
  3. How much would Sales for 2022 have been to generate an operating income of $200,000?

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