Question: GrandSlam, Inc., incurred the following costs during March: Selling expenses $ 158,700 Direct labor 286,000 Interest expense 40,500 Manufacturing overhead, actual 159,720 Raw materials used

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


Selling expenses	$	158,700
Direct labor		286,000
Interest expense		40,500
Manufacturing overhead, actual		159,720
Raw materials used		473,000
Administrative expenses		121,400

During the month, 19,800 units of product were manufactured and 10,500 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.

Required:

Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. (Round "Average cost per unit" to 2 decimal places.)

b. Calculate the cost of goods sold during March. (Round "Average cost per unit" to 2 decimal places.)

c-1. Calculate the difference between cost of goods manufactured and cost of goods sold. (Round "Average cost per unit" to 2 decimal places.)

c-2. How will this amount be reported in the financial statements?

d. Prepare a traditional (absorption) income statement for GrandSlam, Inc., for the month of June. Assume that sales for the month were $1,039,000 and the company's effective income tax rate was 35%. (Round "Average cost per unit" to 2 decimal places.)

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