Below are the questions you should answer and upload in the Test 2 Drop box

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

Eastern Shore Ltd Cost and Sales information For the Year Ended December 31, 2021 1. Sales 495,000
2. Administrative expense	71,800
3. Selling expense	81,800
4. Purchases of raw materials	94,500
5. Raw materials inventory, beginning	14,500
6. Raw materials inventory, ending	21,500
7. Depreciation, factory	44,700
8. Insurance, factory	5,000
9. Direct labour	64,500
10. Maintenance, factory	30,000
11. Utilities, factory	27,000
12. Supplies, factory	1,000
13. Advertising expense	21,800
14. Indirect labour, factory	65,000
15. Work in process inventory, beginning	7,000
16. Work in process inventory, ending	30,000
17. Finished goods inventory, beginning	10,000
18. Finished goods inventory, ending	40,000

Requirement 1: 20mks

1. Prepare a schedule of cost of goods manufactured.

Requirement 2: 20mks

2. Prepare an income statement.

Requirement 3: 5mks 3.

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.)

Requirement 4: 5mks 4.

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.)