Selected account balances for the year ended December 31 are provided below for Superior Company: Selling and administrative salaries $ 118,000 Insurance, factory 8,000 Utilities, factory 53,000 Purchases of raw materials ? Indirect labour 68,000 Direct labour 81,300 Advertising expense 68,100 Cleaning supplies, factory 8,700 Sales commissions 42,000 Rent, factory building 126,000 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 $ 64,000 $ 15,500 Work-in-process ? 41,200 Finished goods 46,500 80,000 The total manufacturing costs for the year were $705,000, and the cost of goods sold totalled $677,000.

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 50,000 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 40,000 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.)

The only selling expenses were a commission of $2 per unit sold and advertising amounting to $350,000. Administrative expenses, all fixed, equalled $270,000. There were no beginning and ending work-in-process inventories.