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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

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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 Maintenance, factory Supplies, factory Insurance, factory Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Direct labour Indirect labour Work-in-process inventory, beginning Work-in-process inventory, ending Sales Selling expenses $ 37,000 74,000 23,000 124.000 13,000 91,000 13,000 6,000 142,000 15,000 8,000 87,000 12,500 24,000 36,000 585,000 86,000 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 available for use Raw materials used in production Manufacturing overhead: Manufacturing overhead: Total overhead costs Total manufacturing costs Total work in process inventory Cost of goods manufactured 2. Prepare an income Statement. MERIWELL COMPANY Income Statement For the Year Just Completed Cost of goods sold: Goods available for sale Less operating expenses. 3. What was the average cost per unit for direct materials and factory depreciation? (Round your answers to 2 decimal pinces) Average Cost Direct materials Factory depreciation per unit per unit 4-a. Assume that the company expects to produce 25,000 units of product during the coming year What average cost per unit an 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.) Total Cost Direct materials Factory depreciation Average 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 O Increase O Decrease Remain unchanged

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