Reference no: EM132475080

Carlton Manufacturing Company provided the following details about operations in February:

Purchases of raw materials        $136,000

Maintenance, factory                   37,600

Direct labour                               32,900

Depreciation, factory equipment       55,800

Indirect materials, factory                  3,100

Selling and administrative salaries         43,100

Utilities, factory                                 26,400

Sales commissions                                 17,700

Insurance, factory equipment                    4,100

Depreciation, sales equipment                   20,400

Advertising expenses                                108,500

Rent, factory building                                      ?

The company also provided details regarding the balances in the inventory accounts at the beginning and end of the month as follows:

                      Beginning of Month                     End of Month

Raw materials         $27,000                                  ?

Work in process          24,800                                 ?

Finished goods               16,000                                 ?

Raw materials used in production cost $141,680, total overhead costs for the year were $176,240, the goods available for sale totalled $368,000, and the cost of goods sold totalled $323,500.

Required:

Question 1-a. Do a schedule of cost of goods manufactured of the company's income statement for the year.

Question 1-b. Do a schedule cost of goods sold section of the company's income statement for the year.

Question 2. Assume that the dollar amounts given above are for the equivalent of 15,400 units produced during the year. Compute the average cost per unit for direct materials used, and compute the average cost per unit for rent on the factory building. (Round your answers to 2 decimal places.)

Question 3. Assume that in the following year the company expects to produce 20,400 units. What average cost per unit and total cost would you expect to be incurred for direct materials, and for rent on the factory building? Direct materials are a variable cost and rent is a fixed cost. (Round "Unit cost" answers to 2 decimal places.)