Champs, Inc incurred the following costs during March:
Selling Expenses ............ $31,675
Direct Labor ............. $56,628
Interest Expense ............. 8,213
Manufacturing overhead, actual ...... 40,950
Raw Materials, used ............ 92,196
Administrative expenses ......... 24,600
During the month, 3900 units of product were manufactured and 2,200 units of product were sold. On March 1, Champs Inc carried no inventories. On March 31, there were no inventories for raw materials or work in process.
A) Calculate the costs of goods manufactured during March and the average cost per unit of product manufactured.
B) Calculate the costs of goods sold during March.
C) Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?
D) Prepare a traditional income statement for Champs, Inc for the month of March. Assume that sales for the month were $207,060 and the company’s effective tax rate was 35%