Reference no: EM131824116

Question - Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below:

Finished goods inventory, beginning $20,000

Finished goods inventory, ending $40,000

Administrative expenses $110,000

Manufacturing overhead $105,000

Purchases of raw materials $125,000

Raw materials inventory, beginning $9,000

Raw materials inventory, ending $6,000

Direct labor $70,000

Work in process inventory, beginning $17,000

Work in process inventory, ending $30,000

Sales $500,000

Selling expenses $80,000

Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed.

Prepare a schedule of cost of goods manufactured.

Prepare an income statement.

Assume that the company produced the equivalent of 10,000 units of product during the year just completed. What was the average cost per unit for direct materials? What was the average cost per unit for fixed manufacturing overhead?

Assume that the company expects to produce 15,000 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 fixed manufacturing overhead? Assume that direct materials is a variable cost.