I Ri in 1 of 3 December 31, 2021. QUESTION 1 f Cost of Goods Manufactured: Income Statement. sited, a manufacturing Company, produces a single product. The following en from the company's production, sales and cost records for the year ended Sales Indirect Labour Utilities Direct Labour Depreciation, factory equipment Raw materials purchased Depreciation, sales equipment $450,000 12,000 15,000 70,000 21,000 165,000 18,000 Insurance expired during the year 4,000 Rent on facilities 50,000 Selling and administrative salaries 32,000 Advertising 75,000 Additional information about the company follows: a. Some 60 percent of the utilities costs and 75 percent of the expired insurance apply to factory operations. The remaining amounts apply to selling and administrative activities b. Only 80 percent of the rent on facilities apply to factory operations: the remainder applies to selling and administrative activities. c. Total production for the year was 620,000 units. d. Inventories: Inventory 1/1/2021 Raw Materials $8,000 31/12/2021 $13,000 Work in Progress 16,000 21,000 Finished Goods 40,000 60,000 Required: 1. Calculate the prime cost & conversion cost of the chocolates produced. (3 marks) 2. Compute the average production cost per unit during the year. (2 marks) 3. Prepare a schedule of cost of goods manufactured for the year. (21 marks) 4. Prepare an income statement for the year. (19 marks) QUESTION 1 QUESTION 1: Schedule of Cost of Goods Manufactured: Income Statement. Richmond Chocolates Limited, a manufacturing Company, produces a single product. The following information has been taken from the company's production, sales and cost records for the year ended December 31, 2021. Raw materials purchased Sales Indirect Labour Utilities Direct Labour Depreciation, factory equipment Depreciation, sales equipment Rent on facilities $450,000 12,000 15,000 70,000 21,000 165,000 18,000 Insurance expired during the year 4,000 50,000 Selling and administrative salaries 32,000 Advertising 75,000 Additional information about the company follows: a. Some 60 percent of the utilities costs and 75 percent of the expired insurance apply to factory operations. The remaining amounts apply to selling and administrative activities b. Only 80 percent of the rent on facilities apply to factory operations: the remainder applies to selling and administrative activities. c. Total production for the year was 620,000 units. d. Inventories: Inventory 1/1/2021 31/12/2021 Raw Materials $8,000 $13,000 Work in Progress 16,000 21,000 Finished Goods 40,000 60,000 Required: 1. Calculate the prime cost & conversion cost of the chocolates produced. (3 marks) 2. Compute the average production cost per unit during the year. (2 marks) 3. Prepare a schedule of cost of goods manufactured for the year. (21 marks) 4. Prepare an income statement for the year. (19 marks)