Heaven Consumer Products Inc. has the following sales and cost data for 19A

Heaven Consumer Products Inc. has the following sales and cost data for 19A

Selling and administrative expenses

$25000

Direct materials purchased

12000

Direct labor

18000

Sales

160000

Direct materials inventory beginning

3000

Direct materials inventory ending

2000

Work-in-process beginning

14000

Work-in-process ending

13500

Factory depreciation

27000

Indirect materials

4000

Factory utilities

2000

Indirect labor

5500

Maintenance

2000

Insurance

1000

Finished goods inventory beginning

6000

Finished goods inventory ending

4000

1. Prepare a schedule of cost of goods manufactured for 19A.

2. Prepare an income statement for 19A.

3. Assume that the company manufactured 5000units during the year. What was the unit cost of direct materials? What was the unit cost of factory
depreciation? (Assume that depreciation is computed by the straight-line method.)

4. Repeat the computation done in part 3 for 10000 units of output. How would the total costs of direct materials and factory overhead be affected?

5. Comment on the results you obtained in parts 3 and 4 in terms of how they affect the possible sales price.