Cost and sales information for the most recent fiscal year are shown below:

WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expense Sales Utilities, factory Supplies, factory Selling expense Advertising expense Indirect labour, factory Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $ 93,000 13,000 20,000 43,800 5 5,000 63,000 30,000 71,200 480,000 27,000 1,000 81,200 21,200 65,000 7,000 30,000 10,000 40,000 1. Prepare a schedule of cost of goods manufactured. 0 0 WALLACE RIVER COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: Raw materials inventory, beginning Add: Purchases of raw materials Raw materials available for use Add: Raw materials inventory, ending Raw materials used in production Direct labour Manufacturing overhead: Depreciation, factory Insurance, factory Maintenance, factory Utilities, factory Supplies, factory Direct labour $ 0 0 Total overhead costs Total manufacturina costs 0 Add: Work in process inventory, January 1 0 Add: Work in process inventory, December 31 Cost of goods manufactured S 0 2. Prepare an income statement. WALLACE RIVER COMPANY Income Statement For the Year Ended December 31 Sales Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Finished goods inventory, beginning Deduct: Finished goods inventory, ending Gross margin Selling and administrative expenses 0 0 0 Selling and administrative expenses Selling expense Administrative expense Advertising expense Goods available for sale Operating income $ 0 $ 0 3. Assume that the company produced 10,000 units of product during the year. What was the average cost per unit for direct materials? What was the average cost per unit for factory depreciation? (Round your answers to 2 decimal places.) Cost Per Unit Direct materials Factory depreciation 4. Assume that the company expects to produce and sell 15,000 units of product during the coming year. What average cost per 4. Assume that the company expects to produce and sell 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 and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation, assume that the company uses straight-line depreciation and that the factory equipment has five years of useful life remaining. (Round your answers to 2 decimal places.) Cost Per Unit Total Cost Direct materials Factory depreciation Prey 2 of 3 III Next