GrandSlam, Inc., incurred the following costs during March:

Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,340

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,752

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,135

Manufacturing overhead, actual. . . . . . . . . . . . . . . . . . . . . . . . 32,760

Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,464

Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,675

Required:

During the month, 2,600 units of product were manufactured and 1,450 units of product were sold. On March 1, GrandSlam, Inc., carried no inventories. On March 31, there were no inventories for raw materials or work in process.

a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured.

b. Calculate the cost 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. (Optional) Prepare a traditional (absorption) income statement for GrandSlam, Inc., for the month of March. Assume that sales for the month were $138,040 and the company's effective income tax rate was 35%.