Requimd: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare an income statement. 3. Assume that the company produced 10.000 units of product during the year. What was the average cost per unit for direct materials? What was the average cost per unit for factory depreciation? 4. Assume that the company expects to produce and sell 15,000 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 and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation. assume that the company uses straightline depreciation and that the factory equipment has ve years of useful life remaining. 5. Explain any difference in the average cost per unit between requirements (3) and (4) above. Cost and sales information for the most recent scal year are shown below: WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials $ 90,000 Raw materials inventory, beginning 10,000 Raw materials, ending 17,000 Depreciation, factory 42,000 Insurance, factory 5,000 Direct labour 60,000 Maintenance, factory 30,000 Administrative expense 70,000 Sales 450,000 Utilities, factory 27,000 Supplies, factory 1,000 Selling expense 80,000 Advertising expense 20,000 Indirect labour, factory 65,000 Work in process inventory, beginning 7,000 Work in process inventory, ending 30,000 Finished goods inventory, beginning 10,000