Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price You are consulted by Investors, Inc., a group of investors planning a new product. They have estimates of the costs of materials, labor, overhead, and other expenses for 2019 but need to know how much to charge for each unit to earn a profit in 2019 equal to 10% of their estimated investment of $500,000 (ignore income taxes).

Their plans indicate that each unit of the new product requires the following:

Direct Material	4 lb. of a material costing $6 per lb.
Direct labor	3 hrs. of adie cutter'stime at $9 per hr.
	2 hrs. of an assembler's time at $8 per hr.

Major items of production overhead would be annual rent of $40,000 on the factory building and $25,000 on machinery as well as indirect materials of $21,000. Other production overhead is an estimated 60% of total direct labor costs. Selling expenses are an estimated 20% of total sales, and nonfactory administrative expenses are 10% of total sales.

The consensus at Investors is that during 2019, 4,000 units of product should be produced for selling and another 1,000 units should be produced for the next years beginning inventory. Also, an extra 6,000 pounds of materials will be purchased as beginning inventory for the next year. Because of the nature of the manufacturing process, all units started must be completed, so work-in-process inventories are negligible.

Required a. Incorporate the above data into a schedule of estimated total manufacturing costs and compute the unit production cost for 2019.

Do not use negative signs with any of your answers.

The # already input are correct.

Estimated Total Manufacturing Cost For the Year Ended December 31, 2019
Direct material:
Beginning materials inventory		Answer 0
Cost of materials purchased		Answer
Cost of material available		Answer
Less:	Ending materials inventory	Answer 36000
Total materials used		Answer
Less:	Indirect materials used	Answer 21000
Direct materials used			Answer
Direct labor			Answer 215000
Manufacturing overhead
Indirect material		Answer 21000
Building rent		Answer 40000
Machinery rent		Answer 25000
Other factory overhead		Answer 129000
Total manufacturing overhead			Answer 215000
Total manufacturing costs			Answer
Round answer to two decimal places.
Product cost per unit		Answer

b. Prepare an estimated income statement that would provide the target amount of profit for 2019.

Income Statement For the Year Ended December 31, 2019
Sales		Answer
Cost of goods sold		Answer
Gross profit on sales		Answer
Operating expenses:
Selling expenses	Answer
Administrative expenses	Answer	Answer
Net income		Answer

c. What unit sales price should Investors charge for the new product?

$Answer