Selected account balances for the year ended December 31 are provided below for Superior Company: Selling and administrative salaries Insurance, factory Utilities, factory Purchases of raw materials Indirect labour Direct labour Advertising expense Cleaning supplies, factory Sales commissions Rent, factory building Maintenance, factory $117,000 7,000 47,000 ? 68,000 36,400 68,800 8,600 52,000 120,000 30,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Finished goods Beginning of the Year $53,200 2 46,000 End of the Year $12,700 40,500 29,000 The total manufacturing costs for the year were $665,000, and the cost of goods sold totalled $676,000. Required: 1.a. Prepare a schedule of cost of goods manufactured. SUPERIOR COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: Raw materials inventory, beginning 53,200 Add: Purchases of raw materials Raw materials available for use 53,200 Deduct: Raw materials inventory, ending Raw materials used in production Direct labour Manufacturing overhead: Cleaning supplies, factory Indirect labour Insurance, factory Maintenance, factory Utilities, factory Rent, factory building $ 53,200 0 53,200 Total overhead costs Total manufacturing costs Add: Work in process inventory, beginning Total work in process inventory Deduct: Work in process inventory, ending Cost of goods manufactured 53,200 $ 53,200 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 Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Cost of goods sold 0 $ 0 2. Assume that the dollar amounts given above are for the equivalent of 60,000 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.) Direct materials Rent on the factory building Average Cost per unit per unit 3. Assume that in the following year the company expects to produce 50,000 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.) Total Cost Average Cost per unit Direct materials Rent on the factory building per unit