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The following information pertains to the most recent quarter at Precious Production Limited. Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending

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The following information pertains to the most recent quarter at Precious Production Limited. Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labour Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $360,000 40,000 68,000 168,000 20,000 240,000 120,000 280,000 1,800,000 108,000 4,000 320,000 260,000 28,000 120,000 40,000 160,000 Required: 1. Prepare a schedule of cost of goods manufactured. Required: 1. Prepare a schedule of cost of goods manufactured. PRECIOUS PRODUCTION Schedule of Cost of Goods Manufactured For the quarter ended xxxx Direct materials: ses Manufacturing overhead: Manufacturing overhead: Total overhead costs Total manufacturing costs Cost of goods manufactured 2. Prepare an income statement. PRECIOUS PRODUCTION LIMITED Income Statement For the quarter ended xxxx Cost of goods sold: Selling and administrative expenses: 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.) Average cost Direct labour Insurance per unit per unit 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.) Average cost Total cost per unit Direct materials Insurance 5. Not available in Connect. 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. Direct materials Direct labour Manufacturing overhead Total

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