W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips’ accounting records provide the following information:Purchases of raw materials ………………………………….$320,000Beginning materials inventory ………………………………...46,800Ending materials inventory ……………………………………66,800Direct labor …………………………………………………..200,000Indirect labor ………………………………………………….40,000Rent, factory building …………………………………………42,000Depreciation, factory equipment ………………………………60,000Utilities, factory ……………………………………………….11,900Salary, sales supervisor ………………………………………..90,000Commissions, salespersons …………………………………..180,000General administration ……………………………………….300,000Beginning work-in-process inventory …………………………13,040Ending work-in-process inventory …………………………….14,940Beginning finished goods inventory …………………………..80,000Ending finished goods inventory …………………………….114,100Required: 1. Prepare a statement of cost of goods manufactured.2. Compute the average cost of producing one unit of product in the year.3. Prepare an income statement for external users.