GrandSlam Incorporated incurred the following costs during March:

Selling expenses	$ 157,200
Direct labor	309,000
Interest expense	40,700
Manufacturing overhead, actual	81,070
Raw materials used	472,000
Administrative expenses	116,600

During the month, 18,700 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:

1. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured.
2. Calculate the cost of goods sold during March.
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. Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month was $1,048,000 and the company's effective income tax rate was 35%.