GrandSlam Incorporated incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses During the month, 18,400 units of product were manufactured and 11,700 units of product were sold. On March 1, GrandSlam carried no inventories. On March 31, there were no inventories for raw materials or work in process. Required: 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? $ 156,800 302,000 41,100 63,360 470,000 121,600 d. Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month was $1,040,000 and the company's effective income tax rate was 35%. Complete this question by entering your answers in the tabs below. Req A and B Req C Req D a. Cost of goods manufactured a. Average cost per unit b. Cost of goods sold a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. Note: Round "Average cost per unit" to 2 decimal places. b. Calculate the cost of goods sold during March. Note: Round "Average cost per unit" to 2 decimal places. < Req A and B Req C > Show less A
GrandSlam Incorporated incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses During the month, 18,400 units of product were manufactured and 11,700 units of product were sold. On March 1, GrandSlam carried no inventories. On March 31, there were no inventories for raw materials or work in process. Required: 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? $ 156,800 302,000 41,100 63,360 470,000 121,600 d. Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month was $1,040,000 and the company's effective income tax rate was 35%. Complete this question by entering your answers in the tabs below. Req A and B Req C Req D a. Cost of goods manufactured a. Average cost per unit b. Cost of goods sold a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. Note: Round "Average cost per unit" to 2 decimal places. b. Calculate the cost of goods sold during March. Note: Round "Average cost per unit" to 2 decimal places. < Req A and B Req C > Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:GrandSlam Incorporated incurred the following costs during March:
Selling expenses
Direct labor
Interest expense
Manufacturing overhead, actual
Raw materials used
Administrative expenses
During the month, 18,400 units of product were manufactured and 11,700 units of product were sold. On March 1, GrandSlam carried no
inventories. On March 31, there were no inventories for raw materials or work in process.
Required:
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.
$ 156,800
302,000
c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the
financial statements?
41,100
63,360
470,000
121,600
d. Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month was
$1,040,000 and the company's effective income tax rate was 35%.
Req A and B
Complete this question by entering your answers in the tabs below.
Req C
Req D
a. Cost of goods manufactured
a. Average cost per unit
b. Cost of goods sold
a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured.
Note: Round "Average cost per unit" to 2 decimal places.
b. Calculate the cost of goods sold during March.
Note: Round "Average cost per unit" to 2 decimal places.
< Req A and B
Req C >
Show less
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