The following information pertains to the most recent quarter at Widgets Production Limited.

Purchases of raw materials $ 372,000

Raw materials inventory, beginning 43,200

Raw materials inventory, ending 72,000

Depreciation, factory 188,000

Insurance, factory 20,800

Direct labour 245,600

Maintenance, factory 123,200

Administrative expenses 286,400

Sales 1,992,000

Utilities, factory 112,000

Supplies, factory 4,080

Selling expenses 327,200

Indirect labour 265,600

Work in process inventory, beginning 28,400

Work in process inventory, ending 121,600

Finished goods inventory, beginning 41,200

Finished goods inventory, ending 164,800

Requirement 1: (15 Mks)

1. Prepare a schedule of cost of goods manufactured.

Requirement 2: (15 Mks)

2. Prepare an income statement.

Requirement 3: (10 Mks)

3. Assume that the company produced the equivalent of 18,000 units of product during the quarter.

What was the average cost per unit for direct labour? What was the average cost per unit for factory

insurance?

Requirement 4: (10 Mks)

4. Assume that the company expects to produce 20,000 units of product during the coming quarter.

What average cost per unit and what total cost would you expect the company to incur for direct

materials at this level of activity? For factory insurance? (In preparing your answer, assume that

direct materials is a variable cost and that factory insurance is a fixed cost.)