elected account balances for the year ended December 31 are provided below for Superior Company:

Selling and administrative salaries	$	115,000
Insurance, factory		7,800
Utilities, factory		65,300
Purchases of raw materials		?
Indirect labour		66,000
Direct labour		86,500
Advertising expense		70,200
Cleaning supplies, factory		8,400
Sales commissions		39,500
Rent, factory building		135,000
Maintenance, factory		30,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning of the Year			End of the Year
Raw materials	$	63,200		$	18,200
Work in process		?			39,100
Finished goods		45,000			68,000

The total manufacturing costs for the year were $724,000, and the cost of goods sold totalled $674,000.

1.a. Prepare a schedule of cost of goods manufactured. 1 SUPERIOR COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 $ 63,200 63,200 18,200 $ 45,000 86,500 Direct materials: Raw materials inventory, beginning Add: Purchases of raw materials Raw materials available for use Deduct: Raw materials inventory, ending Raw materials used in production Direct labour Manufacturing overhead: Insurance, factory Utilities, factory Indirect labour Cleaning supplies, factory Rent, factory building Maintenance, factory 7,800 65,300 66,000 8,400 135,000 30,000 Total overhead costs 312,500 444,000 Total manufacturing costs Add: Work in process inventory, beginning Total work in process inventory Deduct: Work in process inventory, ending 444,000 2. Assume that the dollar amounts given above are for the equivalent of 50,000 units produced during the year. Compute the average cost per unit for direct materials used and the average cost per unit for rent on the factory building. (Round your answers to 2 decimal places.) Average Cost per unit Direct materials Rent on the factory building per unit 3. Assume that in the following year the company expects to produce 60,000 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 direct materials are a variable cost and that rent is a fixed cost.) (Round your "Average Cost" answers to 2 decimal places.) Average Cost Total Cost Direct materials Rent on the factory building per unit per unit 1.b. Prepare the cost of goods sold section of the company's income statement for the year. SUPERIOR COMPANY Income Statement (Partial) For the Year Ended December 31 Goods available for sale 0 Cost of goods sold 0