2-11. How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why? Alexandria Aluminom Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. Exercise 2-29 Schedules of Cost of Goods Manufactured and Sold; Income Statement (LO 2-1, 2-8, 2-6) Inventory Classification January 1, 20x1 Raw materal........... 1200 State. $60,000 Work in process......1 170 000 Frisked goods. 150,000 December 31, 20x1 $70,000 115,000 165,000 During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: indirect material Indirect Isored 7 Later (75-For Depreciation on plant and equipment Wales Other $10,000 25,003 100,000 25,000 30,000 Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare a schedule of cost of goods sold. 3. Prepare an income statement.