FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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hello, I just need help on the ones I got incorrect on Req D

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%.
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Transcribed Image Text: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%.
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.)
GRANDSLAM INC.
Absorption Income Statement
For the month of March
Sales
$ 1,035,000 X
Cost of goods sold
467,630 X
Gross profit
2$
567,370
Selling and administrative expenses
277,900 X
Operating income
$
289,470
Interest expense
42,300
Income before taxes
247,170
Income tax expense
42,300 X
Net income
2$
204,870
Req C
Req D >
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Transcribed Image Text: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.) GRANDSLAM INC. Absorption Income Statement For the month of March Sales $ 1,035,000 X Cost of goods sold 467,630 X Gross profit 2$ 567,370 Selling and administrative expenses 277,900 X Operating income $ 289,470 Interest expense 42,300 Income before taxes 247,170 Income tax expense 42,300 X Net income 2$ 204,870 Req C Req D >
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