Maryville, Inc., incurred the following costs during August:

Raw materials used

$

34,700

Direct labor

51,600

Manufacturing overhead, actual

48,100

Selling expenses

29,120

Administrative expenses

15,580

Interest expense

10,000

During the month, 5,600 units of product were manufactured and 3,900 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.

d. Prepare a traditional (absorption) income statement for Maryville, Inc., for the month of August . Assume that sales for the month were $271,377 and the company's effective income tax rate was 35%.

MARYVILLE, INC.
Absorption Income Statement
For the month of August