Problem 16.8A (Static) Measuring Unit Cost (LO16-3, LO16-4, LO16-6) Early In the year, John Raymond founded Raymond Engineering Co. for the purpose of manufacturing a special flow control valve that he had designed. Shortly after year-end, the company's accountant was injured in a skiing accident, and no year-end financial statements were prepared. However, the accountant had correctly determined the year-end Inventories at the following amounts. Materials $ 46, 080 Work in process 31,580 Finished goods (3,600 units) As this was the first year of operations, there were no beginning Inventories. While the accountant was In the hospital. Raymond Improperly prepared the following Income statement from the company's accounting records. Net sales $ 610,608 Cost of goods sold: Purchases of direct materials $ 181, 680 Direct labor costs 110, 680 Manufacturing overhead 170, 680 Selling expenses 70, 680 Administrative expenses 132, 980 Total costs 663,600 Net loss for year $ (53,606) Raymond was very disappointed In these operating results. He stated, "Not only did we lose more than $50,000 this year, but look at our unit production costs. We sold 10,000 units this year at a cost of $663,600; that amounts to a cost of $66.36 per unit. I know some of our competitors are able to manufacture similar valves for about $35 per unit. I don't need an accountant to know that this business Is a failure." Required: a. Prepare a schedule of the cost of finished goods manufactured for the year. (As there were no beginning Inventories, your schedule will start with "Manufacturing costs assigned to production") b. Compute the average cost per unit manufactured. C. Prepare a corrected income statement for the year, using the multiple-step format. If the company has earned any operating Income. assume an Income tax rate of 30 percent Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a schedule of the cost of finished goods manufactured for the year. (As there were no beginning inventories, your schedule will start with "Manufacturing costs assigned to production".) RAYMOND ENGINEERING CO. Schedule of the Cost of Finished Goods Manufactured For the Year Ended December 31 Manufacturing costs assigned to production: Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Less: Work in process, end of year Cost of finished goods manufactured