Steel Company USA is a metal fabricating business that sells

Steel Company USA is a metal fabricating business that sells products mainly to the home construction market. The data table that follows should be used in this assignment. The problems are at the end of the data table.       InputsCostsSandpaper$4,000Materials – handling costs$140,000Lubricants and coolants$10,000Misc indirect labor$80,000Misc direct labor$600,000Direct materials inv Jan 1, 2010$80,000Direct materials inv Dec 31, 2010$100,000Finished goods inv, Jan 1, 2010$200,000Finished goods inv, Dec 31, 2010$300,000WIP Jan 1, 2010$20,000WIP Dec 31, 2010$28,000Plant lease costs$108,000Depreciation – PPE$72,000Property taxes$8,000Insurance$6,000Direct materials purchased$920,000Revenues$2,720,000Marketing Promo$120,000Marketing Salaries$200,000Distribution costs$140,000Customer service costs$200,000Using the information in the table, create an income statement with a schedule for costs of goods manufactured. Make sure that for the costs you classify if they are direct or indirect and indicate if they are variable or fixed.Let’s assume that both direct material costs and plant leasing costs are for the production of 1,800,000 units. What would be the direct material cost of each of these units produced? Plant leasing cost per unit? Plant leasing should be a fixed cost here.Now let’s assume we build 2,000,000 units next year. Repeat the calculations in item #2 above for direct materials and plant leasing costs.Explain why the unit costs for direct materials didn’t change in numbers 2 and 3, but the unit costs for the plant lease did.