GrandSlam Incorporated incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses $ 158,400 293,000 42,600 133,560 486,000 119,600 During the month, 18,700 units of product were manufactured and 10,900 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? d. Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month was $1,032,000 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 Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month was $1,032,000 and the company's effective income tax rate was 35%. Note: Round "Average cost per unit" to 2 decimal places. GRANDSLAM INCORPORATED Absorption Income Statement For the month of March Sales $ 1,032,000 Cost of goods sold Gross profit 381,156 $ 650,844 $ 650,844 $ 650,844
GrandSlam Incorporated incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses $ 158,400 293,000 42,600 133,560 486,000 119,600 During the month, 18,700 units of product were manufactured and 10,900 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? d. Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month was $1,032,000 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 Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month was $1,032,000 and the company's effective income tax rate was 35%. Note: Round "Average cost per unit" to 2 decimal places. GRANDSLAM INCORPORATED Absorption Income Statement For the month of March Sales $ 1,032,000 Cost of goods sold Gross profit 381,156 $ 650,844 $ 650,844 $ 650,844
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
H6
Transcribed Image Text:S
GrandSlam Incorporated incurred the following costs during March:
Selling expenses
Direct labor
Interest expense
Manufacturing overhead, actual
Raw materials used
Administrative expenses
$ 158,400
293,000
42,600
133,560
486,000
119,600
During the month, 18,700 units of product were manufactured and 10,900 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?
d. Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month was
$1,032,000 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
Prepare a traditional (absorption) income statement for Grand Slam for the month of March. Assume that sales for the month
was $1,032,000 and the company's effective income tax rate was 35%.
Note: Round "Average cost per unit" to 2 decimal places.
GRANDSLAM INCORPORATED
Absorption Income Statement
For the month of March
Sales
Cost of goods sold
Gross profit
$ 1,032,000
381,156
$
650,844
$
650,844
$
650,844
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