GrandSlam Incorporated incurred the following costs during March:

Selling expenses$ 159,400Direct labor295,000Interest expense42,700Manufacturing overhead, actual73,380Raw materials used467,000Administrative expenses117,200

During the month, 18,200 units of product were manufactured and 11,700 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:

1. 1.Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured.
2. 2.Calculate the cost of goods sold during March.
3. 3.Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?
4. 4.Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month was $1,038,000 and the company's effective income tax rate was 40%.