3. Grand Slam Incorporated incurred the following costs during March:

Selling expenses	$ 159,600
Direct labor	300,000
Interest expense	42,700
Manufacturing overhead, actual	79,520
Raw materials used	496,000
Administrative expenses	120,500

During the month, 19,200 units of product were manufactured and 11,100 units of product were sold. On March 1, Grand Slam 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 $1,039,000 and the company's effective income tax rate was 35%.

A & B

a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. Note: Round "Average cost per unit" to 2 decimal places. b.Calculate the cost of goods sold during March. Note: Round "Average cost per unit" to 2 decimal places

a. Cost of goods manufactured
a. Average cost per unit
b. Cost of goods sold

C

Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? Note: Round "Average cost per unit" to 2 decimal places.

Difference
Amount will be reported in

Req A a

D

Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month was $1,039,000 and the company's effective income tax rate was 35%. Note: Round "Average cost per unit" to 2 decimal places.

GRANDSLAM INCORPORATED
Absorption Income Statement
For the month of March

Advertising expense

Allowance for bad debts

Commissions expense

Cost of goods sold

Depreciation expense

General and administrative expenses

Income before taxes

Income tax expense

Income taxes payable

Insurance expense

Interest expense

Interest income

Operating income

^ Options for things to go in the first box