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

Purchases of raw materials	$	360,000
Raw materials inventory, beginning		40,000
Raw materials inventory, ending		68,000
Depreciation, factory		168,000
Insurance, factory		20,000
Direct labour		240,000
Maintenance, factory		120,000
Administrative expenses		280,000
Sales		1,800,000
Utilities, factory		108,000
Supplies, factory		4,000
Selling expenses		320,000
Indirect labour		260,000
Work in process inventory, beginning		28,000
Work in process inventory, ending		120,000
Finished goods inventory, beginning		40,000
Finished goods inventory, ending		160,000

Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare an income statement.

3. Assume that the company produced the equivalent of 10,000 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 12,000 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.)

5. This part of the question is not part of your Connect assignment.

6. Assuming the company produced 20,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which is composed of 4,000 finished units.