The following information pertains to the most recent quarter at Precious Production Limited. Purchases of raw...

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The following information pertains to the most recent quarter at Precious Production Limited. Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labour Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $360,000 40.000 68,000 169,000 20,000 240,000 120,000 250,000 1.100,000 108,000 4,000 320,000 260,000 28.000 120,000 40,000 160,000 Required 1. Prepare a schedule of cost of goods manufactured 2. Prepare an income statement 3. Assume that the company produced the equivalent of 10,000 units of product during the year. What was the average cost per unit for direct labour? What was the average cost per unit for factory insurance? 4. Assume that the company expects to produce 12,000 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 at this level of activity? For factory insurance? (In preparing your answer, assume that direct materials is a variable cost and that depreciation is a tand cost, also assume that depreciation is computed on a straight line basis) 1. As the manager miponsible for production costs, explain to the president any difference in the average costs per unit between (3) and (4) above 6. Assuming the company produced 20,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which i composed of 4,000 ished units CHECK FIGURE Cost of goods manufactured-$1160.000 Gross margin-$760,000, Operating income-$160.000. Direct labour cost per unit for 12.000 units-$24 Insurance cost per unit for 12.000 units-5167 The following information pertains to the most recent quarter at Precious Production Limited. Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expenses Sales Utilities, factory Supplies, factory Selling expenses Indirect labour Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $360,000 40.000 68,000 169,000 20,000 240,000 120,000 250,000 1.100,000 108,000 4,000 320,000 260,000 28.000 120,000 40,000 160,000 Required 1. Prepare a schedule of cost of goods manufactured 2. Prepare an income statement 3. Assume that the company produced the equivalent of 10,000 units of product during the year. What was the average cost per unit for direct labour? What was the average cost per unit for factory insurance? 4. Assume that the company expects to produce 12,000 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 at this level of activity? For factory insurance? (In preparing your answer, assume that direct materials is a variable cost and that depreciation is a tand cost, also assume that depreciation is computed on a straight line basis) 1. As the manager miponsible for production costs, explain to the president any difference in the average costs per unit between (3) and (4) above 6. Assuming the company produced 20,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which i composed of 4,000 ished units CHECK FIGURE Cost of goods manufactured-$1160.000 Gross margin-$760,000, Operating income-$160.000. Direct labour cost per unit for 12.000 units-$24 Insurance cost per unit for 12.000 units-5167

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