Various cost and sales data for Medco, Inc., are given below for the just completed year: Purchase of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labor Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labor Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending RM90,000 10,000 17,000 42,000 5,000 60,000 30,000 70,000 450,000 27,000 1,000 80,000 65,000 7,000 30,000 10,000 40,000 Required: 1. Prepare a schedule of cost of goods manufactured. (10 marks) 2. Prepare an income statement. (5 marks) 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 materials? What was the average cost per unit for factory depreciation? (3 marks) 1 ACCT1201 Assignment 1 Jan2021 4. Assume that the company expects to produce 15,000 units of product during the coming year. a. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? (1 mark) b. For factory depreciation? (1mark) (In preparing your answer, assume that direct materials is a variable cost and that depreciation is a fixed cost; also assume that depreciation is computed on a straight-line basis.) 5. As the manager responsible for production costs, explain to the president any difference in the average costs per unit between (3) and (4) above. (1 mark)