Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below: Finished goods inventory, beginning $20,000 Finished goods inventory, ending $40000 Administrative expenses $110000 Manufacturing overhead $105000 Purchases of raw materials $125000 Raw materials inventory, beginning $9000 Raw materials inventory, ending $6000 Direct labor $70,000 Work in process inventory, beginning $17000 Work in process inventory, ending $30,000 Sales $500000 Selling expenses $80000 -------------------------------------------------------------------------------- Of the $105000of manufacturing overhead, $15000 is variable and $90,000 is fixed. Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare an income statement

3. Assume that the company produced the equivalent of 10000 units of product during the year just completed. What was the average cost per unit for fixed manufacturing overhead?

4. Assume that the company expects to produce 15000 units of product during the coming year. Whar average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For fixed manufacturing overhead? Assume that direct materials is a variable cost.

5. As the manager responsible for priduction costs, explain to the president any difference n te average cost per unit between (3) and (4) above.