Partridge, Inc. incurred the following costs during March:

Raw materials purchased $ 46,800

Direct labor (9,200 hours) 156,400

Manufacturing overhead (actual) 83,000

Selling expenses 47,400

Administrative expenses 32,600

Interest expense 14,800

Manufacturing overhead is applied on the basis of $8.50 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, 3,500 units of product were manufactured and 3,400 units of product were sold. On March 1 and March 31, Partridge carried the following inventory balances:

March 1 / March 31

Raw materials $ 14,200 $ 15,400

Work-in-process 64,700 55,800

Finished process 32,400 40,660

(a.) Prepare a Statement of Cost of Goods Manufactured for the month of March, and calculate the average cost per unit produced.

(b.) Calculate the cost of goods sold during March.

(c.) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?