Maryville, Inc., incurred the following costs during August: Raw materials used$32,900Direct labor78,600Manufacturing overhead, actual45,300Selling expenses29,330Administrative expenses15,870Interest expense9,600
Question:
Maryville, Inc., incurred the following costs during August:
Raw materials used$32,900Direct labor78,600Manufacturing overhead, actual45,300Selling expenses29,330Administrative expenses15,870Interest expense9,600
During the month, 5,600 units of product were manufactured and 4,700 units of product were sold. On August 1, Maryville, Inc., carried no inventories. On August 31, there were no inventories other than finished goods.
Required:
a.Calculate the cost of goods manufactured during August and the average cost per unit of product manufactured.
b.Calculate the cost of goods sold during August.
c-1.Calculate the difference between cost of goods manufactured and cost of goods sold.
c-2.How will this amount be reported in the financial statements?
Finished goods inventoryWork in progress inventoryRaw materials inventoryd.Prepare a traditional (absorption) income statement for Maryville, Inc., for the month of August . Assume that sales for the month were $299,257 and the company's effective income tax rate was 30%.