Hello,Grandslam Inc incurred the following costs during March.Selling Expenses $156,100Direct Labor 308,000Interest Expense 41,800Manufacturing Overhead, actual 45,930Raw materials used 466,000Admin Expenses 116,400During the month, 18,100 units were manufactured and 10,600 units of products were sold.  On March 1, Grandslam Inc. carried no inventories.  On March 31, there were no inventories for raw materials or work in progress.Question 7d:  Prepare a traditional (absorption) income statement for Grandslam Inc. for the month of June.  Assume that sales for the month were $1,038,000 and the company's effective income tax rate was 30%.  (Round "Average cost per unit" to 2 decimal places.Sales$1,038,000Cost of Goods sold?Gross Profit? ?Operating Income? ?Income Before taxes?Income Tax Expense?Net Income?Thanks.

Question
Asked Apr 3, 2019
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Hello,

Grandslam Inc incurred the following costs during March.

Selling Expenses   $156,100
Direct Labor   308,000
Interest Expense  

41,800

Manufacturing Overhead, actual   45,930
Raw materials used   466,000
Admin Expenses   116,400

During the month, 18,100 units were manufactured and 10,600 units of products were sold.  On March 1, Grandslam Inc. carried no inventories.  On March 31, there were no inventories for raw materials or work in progress.

Question 7d:  Prepare a traditional (absorption) income statement for Grandslam Inc. for the month of June.  Assume that sales for the month were $1,038,000 and the company's effective income tax rate was 30%.  (Round "Average cost per unit" to 2 decimal places.

Sales $1,038,000
Cost of Goods sold ?
Gross Profit ?
  ?
Operating Income ?
  ?
Income Before taxes ?
Income Tax Expense ?
Net Income ?

Thanks.

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Expert Answer

Step 1

Income statement:

 

Income statement is a monetary statement prepared at the end of the financial period which shows the profitability of a business. Operating income is computed under absorption income statement after deducting the operating expense from the operating income.

 

Note: Here we assume that the income statement for the month of March is prepared as all the given figures belong to the month of March.

Step 2

Traditional (absorption) income statement for Grandslam Inc. in an excel sheet has been presented below:

 

Results of the formulas used in the excel sheet are shown in step 3.

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Step 3

The result calculated using the excel sheet has been presented be...

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