Various cost and sales data for Meriwell Company for the just-completed year follow: Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factory Administrative expenses Utilities, factory Maintenance, factory Supplies, factory Insurance, factory Purchases of raw materials Raw materials inventory, beginning Raw materials inventorv, ending Direct labour Indirect labour Work-in-process inventory, beginning Work-in-process inventory, ending Sales Selling expenses $ 32,000 64,000 18,000 119,000 8,000 76,000 13,000 5,000 137,000 11,000 8,000 82,000 12,500 19,000 31,000 560,000 81,000 Required: 1. Prepare a schedule of cost of goods manufactured MERIWELL COMPANY Schedule of Cost of Goods Manufactured For the Year Just Completed Direct materials Raw materials inventory, beginning Add: Purchases of raw materials Raw materials available for use Deduct: Raw materials inventory, ending Raw materials used in production irect labour 11,000 137,000 148,000 8,000 $ 140,000 82,000 Manufacturing overhead Indirect labour Utilities, factory Depreciation, factory Insurance, factory Supplies, factory Maintenance, factory 12,500 8,000 18,000 5,000 13,000 76,000 Total overhead cost Total manufacturing costs Add: Work in process inventory, beginning 132,500 354,500 19,000 373,500 31,000 $ 342,500 educt: Work in process inventory, ending Cost of goods manufactured 2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $ 560,000 Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending $ 32,000 342,500 374,500 64,000 310,500 Gross margin 249,500 Less operating expenses: Administrative expenses Selling expenses 119,000 81,000 200,000 $ 49,500 Net income . Assume that the company produced the equivalent of 10,000 units of product during the year just completed. What was the average cost per unit for direct materials and factory depreciation? (Round your answers 2 to decimal places.) Average Cost Direct materials 14.00 per unit 1.80 per unit Factory depreciation 4. Assume that the company expects to produce 15,000 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 2 to decimal places.) Average Cost Total Cost 14.00|per unit $ 210,000 1.20 per unit18,000 Direct materials Factory depreciationS
