Required: For Sydney Leather Company: 1 Prepare a statement of cost of goods manufactured. (6 marks) 2 Compute the average cost of producing one unit of product in the year. (1 mark) 3 Prepare an income statement for external users. (5 mark)

Question 3: Schedules of cost of goods manufactured and income statement (12 marks) Sydney Leather Company produced 4000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Sydney Leather' accounting records provide the following information: Amount (S) $320 000 46 800 66 800 200 000 40 000 42 000 60 000 11 900 90 000 180 000 300 000 13 040 14 940 80 000 114 100 Purchases of raw materials Beginning materials invento Ending materials invento Direct labour Indirect labour Rent, factory building iation, fact ipment Utilities, facto Salary, sales s Commissions, salespersons General administration isor g work n process invento Ending work in process invento ing finished s invento Ending finished goods invento