Various cost and sales data for Meriwell Company for the just completed year appear below:

Purchases of raw materials . . . . . . .. . . . . $82300 Raw materials inventory, beginning. . . . . . . $8000 Raw materials inventory, ending. .. . . . . .$ 16000 Depreciation, factory . . . . . . . . . . . . . . . . $40000 Insurance, factory . . . . . . . . . . . . . . . . . . $4800 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $59000 Maintenance, factory . . . . . . . . . . . . . . . $29700 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700000 Utilities, factory . . . . . . . . . . . . . . . . . . . . . $26200 Supplies, factory . . . . . . . . . . . . . . . . . . . . $1900 Selling expenses . . . . . . . . . . . . . . . . . . . $79900 Administrative expenses . . . . . . . . . . . . . $68100 Indirect labor . . . . . . . . . . . . . . . . . . . . $62100 Work in process inventory, beginning . . $7000 Work in process inventory, ending . . . $28100 Finished goods inventory, beginning . . . $10300 Finished goods inventory, ending . . . . $40000

Using the tables below prepare: (A) The direct material costs (or cost of raw materials consumed; (B) the cost of goods manufactured schedule; (C) the cost of goods sold schedule (D) the income statement.

Assume that the company produced the equivalent of 10,000 units of product during the year just completed.(E) What was the average cost per unit for direct materials? Assume that the company expects to produce 15,000 units of product during the coming year. (F)What average cost per unit would you expect the company to incur for direct materials at this level of activity? Assume that direct materials is a variable cost. As the manager responsible for production costs, explain to the president any difference in the average costs per unit between (E) and (F) above.