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

Raw materials used	$	32,900
Direct labor		78,600
Manufacturing overhead, actual		45,300
Selling expenses		29,330
Administrative expenses		15,870
Interest expense		9,600

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.

Cost of goods manufactured
Average cost per unit

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 inventory

Work in progress inventory

Raw materials inventory

d. 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%.

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

2)

Woodland Industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $14 per hour and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 45,700 units for the year, which will require 219,000 direct labor hours:

Activity Cost Driver	Budgeted Costs for 2016			Cost Driver Used as Allocation Base			Cost Allocation Rate
Materials handling	$	48,180			Number of parts used		$	0.22	per part
Cutting and lathe work		2,163,720			Number of parts used			9.88	per part
Assembly and inspection		4,511,400			Direct labor hours			20.60	per hour

The following production, costs, and activities occurred during the month of July:

Units Produced	Direct Materials Costs	Number of Parts Used	Direct Labor Hours
3,380	$101,500	2,677	13,500

a. Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of July (using the activity-based costing approach). (Round "Cost per unit produced" to 2 decimal places.)

Total manufacturing cost
Cost per unit produced

b. Assume instead that Woodland Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activity-based costing system previously described). Calculate the total manufacturing cost and the cost per unit of the windows produced during the month of July. (Hint: You will need to calculate the predetermined overhead application rate using the total budgeted overhead costs for 2016.) (Round "Cost per unit produced" to 2 decimal places.

Total manufacturing cost
Cost per unit produced

c. Which approach do you think provides better information for manufacturing managers?

	Activity based costing
	Direct labor hours basis