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Different cost and sales data for Maxwell Company for the completed year appear in the worksheet below: (Rs. 000) Finished Goods Inventory, Beginning 20,000 Finished

Different cost and sales data for Maxwell Company for the completed year appear in the worksheet below: (Rs. 000) Finished Goods Inventory, Beginning 20,000 Finished Goods Inventory, Ending 40,000 Administrative Expenses 110,000 Manufacturing Overhead 105,000 Purchase of raw materials 150,000 Raw materials, Inventory, Beginning 9,000 Raw materials, Inventory, Ending 6,000 Direct Labour 75,000 Work in Process Inventory, Beginning 17,000 Work in Process Inventory, Ending 30,000 Sales 600,000 Selling Expenses 80,000 Of the 105,000 of manufacturing overhead, 15,000 is variable and 90,000 is fixed. Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare an income statement. 3. Assume that the company produced the equivalent of 15,000 units of product during the year just completed. What was the average cost per unit for direct materials? What was the average cost per unit for fixed manufacturing overhead? 4. Assume that the company expects to produce 20,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For fixed manufacturing overhead? Assume that direct materials is a variable cost.

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