Various cost and sales data for Meriwell Company for the just-completed year, during which it produced 10,000 units, follow: Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factory Administrative expenses Utilities, factory $ 22,000 44,000 16,000 108,000 10,000 Maintenance, factory 46,000 Supplies, factory 11,000 Insurance, factory 3,000 Purchases of raw materials 127,000 Raw materials inventory, beginning 6,000 Raw materials inventory, ending 6,000 Direct labour 72,000 Indirect labour 16,500 Work-in-process inventory, beginning 19,000 Work-in-process inventory, ending 21,000 Sales 510,000 Selling expenses 71,000 Direct materials: MERIWELL COMPANY Schedule of Cost of Goods Manufactured For the Year Just Completed Raw materials available for use Raw materials used in production Manufacturing overhead: Total overhead costs Total manufacturing costs Total work in process inventory Cost of goods manufactured 0 $ 0 0 0 0 $ 0 2. Prepare an income statement. Cost of goods sold: Goods available for sale Less operating expenses: MERIWELL COMPANY Income Statement For the Year Just Completed 0 0 0 3. What was the average cost per unit for direct materials and factory depreciation? (Round your answers to 2 decimal places.) Direct materials Factory depreciation Average Cost per unit per unit 4-a. Assume that the company expects to produce 20,000 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 are a variable cost and that depreciation is a fixed cost; also, assume that depreciation is computed on a straight-line basis.) (Round your "Average Cost" answers to 2 decimal places.) Direct materials Factory depreciation Average Cost Total Cost per unit per unit 4-b. Would you expect the average production cost per unit to increase, decrease or stay the same as in the just-completed year? Increase Decrease Remain unchanged