Morrison & Company Incurred the following costs during August: Raw materials purchased Direct labor ($12.8 per hour) Manufacturing overhead (actual) Selling expenses Administrative expenses Interest expense $ 43,120 56,784 90,140 31,310 14,720 6,244 Manufacturing overhead is applied on the basis of $18 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, 4,210 units of product were manufactured and 4,560 units of product were sold. On August 1 and August 31, Morrison & Company carried the following Inventory balances: Raw materials Work in process Finished goods August 1 $19,380 52,800 40,200 August 31 $17,180 56,800 25,422 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. Prepare a traditional (absorption) Income statement for Morrison & Company for the month of August. Assume that sales for the month were $280,700 and the company's effective Income tax rate was 28%. Req A1 Reg A2 to C2 Reg D Prepare a statement of cost of goods manufactured for the month of August. (Amounts to be deducted should be indicated by minus sign.) MORRISON & COMPANY Statement of Cost of Goods Manufactured For the month of August Raw materials: Raw materials available for use Cost of raw materials used Total manufacturing costs, August Cost of goods manufactured, August Reg A1 Req A2 to C2 > Reg A1 Reg A2 to C2 Reg D a-2. Calculate the average cost per unit of product manufactured. (Round your answer to 2 decimal places.) b. Calculate the cost of goods sold during August. c-1. Calculate the difference between cost of goods manufactured and cost of goods sold. (Round your intermediate calculations 2 decimal places.) c-2. How will this amount be reported in the financial statements? Show less a-2 b. Cost per unit Cost of goods sold Difference Amount will be reported in C-1. c-2 Reg A1 Req A2 to C2 Reg D Prepare a traditional (absorption) income statement for Morrison & Company for the month of August. Assume that sales for the month were $280,700 and the company's effective income tax rate was 28%. (Do not round intermediate calculations.) MORRISON & COMPANY Absorption Income Statement For the month of August