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GrandSlam Inc. incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses $158,600 290,000 42,300 100,050 485,000 123,400 During the month, 18,500 units of product were manufactured and 11,100 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 GrandSlam for the month of March. Assume that sales for the month were $1,043,000 and the company's effective income tax rate was 35%.

GrandSlam Inc. incurred the following costs during March: Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses $158,600 290,000 42,300 100,050 485,000 123,400 During the month, 18,500 units of product were manufactured and 11,100 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 GrandSlam for the month of March. Assume that sales for the month were $1,043,000 and the company's effective income tax rate was 35%.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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GrandSlam Inc. incurred the following costs during March: $158,600 290,000 42,300 100,050 485,000 123,400 Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses During the month, 18,500 units of product were manufactured and 11,100 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 GrandSlam for the month of March. Assume that sales for the month were $1,043,000 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 GrandSlam for the month of March. Assume that sales for the month were $1,043,000 and the company's effective income tax rate was 35%. (Round "Average cost per unit" to 2 decimal places.)
Transcribed Image Text:GrandSlam Inc. incurred the following costs during March: $158,600 290,000 42,300 100,050 485,000 123,400 Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses During the month, 18,500 units of product were manufactured and 11,100 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 GrandSlam for the month of March. Assume that sales for the month were $1,043,000 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 GrandSlam for the month of March. Assume that sales for the month were $1,043,000 and the company's effective income tax rate was 35%. (Round "Average cost per unit" to 2 decimal places.)
tinancial statements? d. Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month were $1,043,000 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 Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? (Round "Average cost per unit" to 2 decimal places.) Difference Amount will be reported in < Req A and B Req D >
Transcribed Image Text:tinancial statements? d. Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month were $1,043,000 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 Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? (Round "Average cost per unit" to 2 decimal places.) Difference Amount will be reported in < Req A and B Req D >
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