Various cost and sales data for Medco Inc. are given for the just-completed year:

Purchases of raw materials	$	174,500
Raw materials inventory, beginning		17,600
Raw materials inventory, ending		26,500
Depreciation, factory		86,400
Insurance, factory		6,900
Direct labour		73,300
Maintenance, factory		37,600
Administrative expenses		85,200
Sales		739,000
Utilities, factory		36,500
Supplies, factory		1,190
Selling expenses		97,100
Indirect labour		78,300
Work in process inventory, beginning		7,950
Work in process inventory, ending		33,800
Finished goods inventory, beginning		12,850
Finished goods inventory, ending		51,400

1) Assume that the company expects to produce 24,000 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 depreciation? (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.)

	Average cost per unit	Total Cost
Direct Materials
Depreciation	$3.60	$86,400

2) Assuming the information given in the problem relates to the production of 30,000 fully and partially finished units during the year and that 6,000 of those units remain unsold, determine the cost components of the finished goods inventory.

Direct Materials
Direct Labour
Manufacturing overhead
Total