Morrison & Company incurred the following costs during August: Cost of goods manufactured, cost of goods sold, and income statement Manufacturing overhead is applied on the basis of $25 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 5,000 units of product were manufac- tured and 5,300 units of product were sold. On August 1 and August 31, Morrison & Company carried the following inventory balances: wuer. Problem 13.30 LO 4,5,7 Raw materials purchased Direct labor ($15 per hour) Manufacturing overhead (actual) Selling expenses Administrative expenses Interest expense $66,150 82,500 135.450 44,700 22,050 7,660 Raw materials ... Work in process Finished goods August 1 $27,440 74.480 58.520 August 31 $25,060 79,760 41,525 Required: a. Prepare a statement of cost of goods manufactured for the month of August and calculate the average cost per unit of product manufactured. b. Calculate the cost of goods sold during August. c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? d. (Optional) Prepare a traditional (absorption) income statement for Morrison & Company for the month of August. Assume that sales for the month were $413,400 and the company's effective income tax rate was 40%. connect