GrandSlam, Inc., incurred the following costs during March: Selling expenses $ 159,900 Direct labor 305,000 Interest...

GrandSlam, Inc., incurred the following costs during March: Selling expenses $ 159,900 Direct labor 305,000 Interest expense 40,400 Manufacturing overhead, actual 111,000 Raw materials used 477,000 Administrative expenses 115,900 During the month, 18,800 units of product were manufactured and 11,800 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.)

Calculate the cost of goods during march, round to 2 decimal places

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

Prepare a traditional (absorption) income statement for GrandSlam, Inc., for the month of June. Assume that sales for the month were $1,045,000 and the company's effective income tax rate was 30%. (Round "Average cost per unit" to 2 decimal places.)

Expert Solution

the cost of goods manufactured during March and the average cost per unit of product manufactured.

A	Direct labor	$305000
B	Manufacturing overhead, actual	$111000
C	Raw material used	$477000
D= A+B+C	cost of Goods manufactured	$893000
E	units produced	$18800
F=D/E	cost per unit produced	47.5

the difference between cost of goods manufactured and cost of goods sold.

G	units sold	11800
H=F*G	cost of goods sold	$560500
I=D-H	Difference	$332500

	Income Statement for Grandslam,INC for the month of june
	Total sales		$ 10,45,000.00
Less	Cost of Goods Sold		$ 5,60,500.00
	Gross profit		$ 4,84,500.00
Less	Operating Expenses
	Selling Expenses	$ 1,59,900.00
	Administrative expenses	$ 1,59,900.00	$ 3,19,800.00
	Operating Profit		$ 1,64,700.00
Less	Interest Expenses		$ 40,400.00
	Income before Tax		$ 1,24,300.00
Less	Tax @ 30 %		$ 37,290.00
	Net Profit after Tax		$ 87,010.00

ekkarill92 answered 1 year ago

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