Reference no: EM133002258

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

Purchases of raw materials $387,000

Raw materials inventory, beginning 47,200

Raw materials inventory, ending 77,000

Depreciation, factory 213,000

Insurance, factory 21,800

Direct labour 252,600

Maintenance, factory 127,200

Administrative expenses 294,400

Sales 2,232,000

Utilities, factory 117,000

Supplies, factory 4,180

Selling expenses 336,200

Indirect labour 272,600

Work in process inventory, beginning 28,900

Work in process inventory, ending 123,600

Finished goods inventory, beginning 42,700

Finished goods inventory, ending 170,800

Required:

Problem 1. Prepare a schedule of cost of goods manufactured.

Problem 2. Prepare an income statement.

Problem 3. Assume that the company produced the equivalent of 17,000 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? (Round your answers to 2 decimal places.)

Problem 4. Assume that the company expects to produce 19,000 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 insurance is a fixed cost; also assume that insurance is computed on a straight-line basis.) (Do not round intermediate calculations. Round "Average cost per unit" answers to 2 decimal places.)

Problem ?5. Assuming the company produced 25,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which is composed of 5,000 finished units.