1 Finished goods inventory. $16,000
2. Finished goods inventory. $14,000
3. Depreciation, factory $21,000
4. Administrative expenses $45,000
5. Utilities, factory $12,000
6. Maintenance, factory $26,000
7. Supplies, factory $6,000
8. Insurance, factory $7,000
9. Purchases of raw materials $72,000
10. Raw materials inventory. $5,000
11. Raw materials inventory. $8,000
12. Direct labor $61,000
13. Indirect labor $32,000
14. Work in process inventory. $13,000
15. Work in process inventory. $14,000
16. Sales $355,000
17. Selling expenses $61,000


1. Prepare schedule of cost of goods manufactured.
2. Prepare income statement.
3. Company produced equivalent of 12,000 units of product during year just completed. What was average cost per unit for direct materials? What was
average cost per unit for factory depreciation?
4. Company expects to produce 10,000 units odf product during coming year.
What per unit cost & what total cost would you expect company to incur for direct materials at this level of activity? For factory depreciation? (In preparing your answer, assume that direct materials is variable cost & that
depreciation is fixed cost that will be same next year as it was this year.)
5. Explain to president any difference in ave. cost per unit between (3) & (4)
above.

i dont understand questions 3 and 4 can anyone help?