GrandSlam, Inc., incurred the following costs during March:

Selling expenses	$	157,000
Direct labor		284,000
Interest expense		41,600
Manufacturing overhead, actual		175,280
Raw materials used		480,000
Administrative expenses		115,500

During the month, 19,900 units of product were manufactured and 10,800 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:

a. 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.)

Cost of goods manufactured
Average cost per unit

b. Calculate the cost of goods sold during March. (Round "Average cost per unit" to 2 decimal places.)

Cost of goods sold

c-1. Calculate the difference between cost of goods manufactured and cost of goods sold. (Round "Average cost per unit" to 2 decimal places.)

Difference

c-2. How will this amount be reported in the financial statements?

	Finished goods inventory
	Raw materials inventory
	Work in progress inventory

d. Prepare a traditional (absorption) income statement for GrandSlam, Inc., for the month of June. Assume that sales for the month were $1,039,000 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