Selected account balances for the year ended December 31 are provided below for Superior Company:

Selling and administrative salaries	$	103,000
Insurance, factory		7,000
Utilities, factory		63,800
Purchases of raw materials		?
Indirect labour		60,000
Direct labour		97,000
Advertising expense		78,600
Cleaning supplies, factory		7,200
Sales commissions		38,000
Rent, factory building		108,000
Maintenance, factory		30,000

Inventory balances at the beginning and end of the year were as follows:

	Beginning of the Year			End of the Year
Raw materials	$	60,000		$	14,000
Work in process		?			30,700
Finished goods		48,000			80,000

The total manufacturing costs for the year were $693,000, and the cost of goods sold totalled $662,000. Required: 1.a. Prepare a schedule of cost of goods manufactured.

1.b. Prepare the cost of goods sold section of the company's income statement for the year.

2. Assume that the dollar amounts given above are for the equivalent of 40,000 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.)

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.)