WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials $ 97,500 Raw materials inventory, beginning 17,500 Raw materials inventory, ending 24,500 Depreciation, factory 46,500 Insurance, factory 5,000 Direct labour 67,500 Maintenance, factory 30,000 Administrative expense 73,000 Sales 525,000 Utilities, factory 27,000 Supplies, factory 1,000 Selling expense 83,000 Advertising expense 23,000 Indirect labour, factory 65,000 Work in process inventory, beginning 7,000 Work in process inventory, ending 30,000 Finished goods inventory, beginning 10,000 Finished goods inventory, ending 40,000 Required:

1. Prepare a schedule of cost of goods manufactured.

2. prepare an income statement

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.)

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.)