Morrison & Company incurred the following costs during August:

Raw materials purchased	$	42,590
Direct labor ($13.1 per hour)		56,461
Manufacturing overhead (actual)		90,270
Selling expenses		31,740
Administrative expenses		14,070
Interest expense		6,207

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, 4,240 units of product were manufactured and 4,570 units of product were sold. On August 1 and August 31, Morrison & Company carried the following inventory balances:

	August 1			August 31
Raw materials	$	19,300		$	17,300
Work in process		53,000			57,100
Finished goods		41,100			25,168

Required:

Prepare a statement of cost of goods manufactured for the month of August and calculate the average cost per unit of product manufactured.

Calculate the cost of goods sold during August.

Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?

Prepare a traditional (absorption) income statement for Morrison & Company for the month of August. Assume that sales for the month were $282,100 and the company's effective income tax rate was 38%.

MORRISON \& COMPANY Statement of Cost of Goods Manufactured For the month of August Raw materials: Purchases during August Raw materials available for use Less: Raw materials inventory, August 31 Cost of raw materials used Direct labor cost incurred Raw materials inventory, August 31 Total manufacturing costs, August Add: Work-in-process, August 1 Less: Work-in-process, August 31 Cost of goods manufactured, August $0 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? Prepare a traditional (absorption) income statement for Morrison \& Company for the month of August. Assume that sales for the month were $282,100 and the company's effective income tax rate was 38%. (Do not round intermediate calculations.)