Purchases of raw materials	$	160,000
Maintenance, factory		40,000
Direct labour		34,500
Depreciation, factory equipment		59,000
Indirect materials, factory		3,500
Selling and administrative salaries		45, 500
Utilities, factory		28,000
Sales commissions		18,500
Insurance, factory equipment		4,500
Depreciation, sales equipment		22,000
Advertising expenses		112,500
Rent, factory building		?

The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows:

	Beginning of Month	End of Month
Raw materials	$	35,000		?
Work in process		28,000		?
Finished goods		20,000		?

Raw materials used in production cost $170,000, total overhead costs for the year were $201,200, the goods available for sale totalled $400,000, and the cost of goods sold totalled $347,500.

Required:

1-a.	Prepare a schedule of cost of goods manufactured of the companys income statement for the year.

1-b.	Prepare a schedule cost of goods sold section of the companys income statement for the year.

2.	Assume that the dollar amounts given above are for the equivalent of 17,000 units produced 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. (Round your answers to 2 decimal places.)

3.

Assume that in the following year the company expects to produce 22,000 units. What average 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. (Round "Unit cost" answers to 2 decimal places.)