The following information pertains to the most recent quarter at Precious Production Limited.

Purchases of raw materials$387,000Raw materials inventory, beginning47,200Raw materials inventory, ending77,000Depreciation, factory213,000Insurance, factory21,800Direct labour252,600Maintenance, factory127,200Administrative expenses294,400Sales2,232,000Utilities, factory117,000Supplies, factory4,180Selling expenses336,200Indirect labour272,600Work in process inventory, beginning28,900Work in process inventory, ending123,600Finished goods inventory, beginning42,700Finished goods inventory, ending170,800

Required:

1.Prepare a schedule of cost of goods manufactured.

2.Prepare an income statement.

3.Assume that the company produced the equivalent of 17,000 units of product during the year. What was the average cost per unit for direct labour? What was the average cost per unit for factory insurance?(Round your answers to 2 decimal places.)

4.Assume that the company expects to produce 19,000 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 at this level of activity? For factory insurance? (In preparing your answer, assume that direct materials is a variable cost and that insurance is a fixed cost; also assume that insurance is computed on a straight-line basis.)(Do not round intermediate calculations. Round "Average cost per unit"answers to 2 decimal places.)

6.Assuming the company produced 25,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which is composed of 5,000 finished units.