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  1. business
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  3. grandslam incorporated incurred the following cost

GrandSlam Incorporated incurred the following costs during March: Selling expenses $ 158,700...

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Accounting

GrandSlam Incorporated incurred the following costs during March:

Selling expenses $ 158,700
Direct labor 294,000
Interest expense 40,400
Manufacturing overhead, actual 117,780
Raw materials used 460,000
Administrative expenses 118,000

During the month, 18,200 units of product were manufactured and 10,500 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:

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

Calculate the cost of goods sold during March.

Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?

Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month was $1,034,000 and the company's effective income tax rate was 30%.

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