Question & Answer: During the month, 18,500 units of product were manufactured and 10,000 units of product were sold. On March…..

GrandSlam, Inc., incurred the following costs during March:

Selling expenses $ 156,500
Direct labor 290,000
Interest expense 41,100
Manufacturing overhead, actual 127,700
Raw materials used 474,000
Administrative expenses 118,500

During the month, 18,500 units of product were manufactured and 10,000 units of product were sold. On March 1, GrandSlam, Inc., carried no inventories. On March 31, there were no inventories for raw materials or work in process.

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: During the month, 18,500 units of product were manufactured and 10,000 units of product were sold. On March…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
Order Essay

Required:

a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. (Round “Average cost per unit” to 2 decimal places.)

e}ru:tn”ioatidaleVblTartta”se,ru:td”rewenssA”i”,:”n”ioptriscdeb_ta,”{}”:62″_],[0″:67″_l,ul:n1″_5,”llnu”:26″_},:{2″_3,”seal:ft”behalpwAhosS”ie,lsfa”:42″_1,:-0″_5,”-1″:24″_1,:-1″_3,”:05″”_0,”:_4,”seal:f8″_4,”{}”:37″_],5}31″:77″_5,10″:34″_[{“:23″_e,ru:t5″_4,”1″leit%20Tew”N”:mena,”}]uetr”:47″_2,”:54″_],:[3″_3,””}79:”1″”c”,94″1″:c0{“”:19″_},3″”2″:”2″,23:”1″,”3″”2″:”0:{9″_5,”]]}}%3B”px23:%20htighe:”8″”_”,ermbNulety%20sseonspre:”7″”_},t”ghri:”8″_6,”uetr”:43″_”,ONTILUSO:”6″_7{“”:55″_},”}”%24″:81″_2,”:53″_2,”:21″_e,ru:t3″_6{“”:55″_”,CYENRRCU:”3″_7{“”:29″_},”}:”9″_7,”2″8.”4″:75″_:{0″”_},”””:79″_”,u~cp”~”:75″_:{6″_5,””}:”9″_7,””””:75″_:{0″_3{“”:_2{“”:20″_,{}}%3B”px23:%20htighe:”8″”_},N”IOSTUE”Q”:76″_:{5″_5,”}}”””:79″_”,itunr%20pet%20os%20cgerave”A”:75″_:{0″_3{“”:_2{“”:20″_[{],}}%3B”px23:%20htighe:”8″”_”,ermbNulety%20sseonspre:”7″”_},t”ghri:”8″_6,”uetr”:43″_”,ONTILUSO:”6″_7{“”:55″_},”}”%24″:81″_2,”:53″_e,ru:t3″_6{“”:55″_”,CYENRRCU:”3″_7{“”:29″_},”}:”9″_7,”0″7091″8″:75″_:{0″”_},”””:79″_”,m~og~c:”5″_7{“”:56″_},”””:79″_”,:”5″_7{“”:30″_:{2″”_:{0″_2{“},”}x%3B3p%202t:ghei”h”:_8,””}ONTIESQU:”6″_7{“”:55″_},”}:”9″_7,”d”retuacufan%20mdsoo%20goft%20os”C”:75″_:{0″_3{“”:_2{“”:20″_[{],}}%3B”px23:%20htighe%3B%20e5ad79%20%23r:locod-unrokgac%20be%3Bon%20ny:laspdi:”8″”_},5″de9a%237:”9″”_”,_1″0″:78″_”,ONTIESQU:”6″_7{“”:55″_},”}:”9″_7,””””:75″_:{0″_3{“”:_2{“”:20″_,{}}%3B”px23:%20htighe%3B%20e5ad79%20%23r:locod-unrokgac”b”:_8,”:26″_1,””}e5ad79″%23″:_9,”0″0_:”8″_7,”N”IOSTUE”Q”:76″_:{5″_5,”}}”””:79″_”,:”5″_7{“”:30″_:{2″”_:{0″_2{“[[“:13″_e,lsfa”:41″_},n”owpDro”d”:27″_1,:-5″_2,”{}”:75″_e,lsfa”:82″_:{8″_2,””””:22″_e,lsfa”:35″_e,ru:t6″_3,”{}”:55″_”,leab%20TedtltiUn:”9″_6,”:27″_1,”:38″_5{“:[5″_6{”

b. Calculate the cost of goods sold during March. (Round “Average cost per unit” to 2 decimal places.)

}uetr”:ontidaliValeabtTarst,”uetr”:ederswAnis,””””:ontiipcres_dab”t},:{2″_6,”0]:[7″_6,”llnu”:51″_l,ul:n6″_2,”{}”:32″_e,lsfa”:etabphAlowShis,”seal:f2″_4,”-1″:50″_1,:-4″_2,”-1″:31″_0,”:_5,”:04″”_e,lsfa”:48″_},:{7″_3,”}]64:27″_7,”59″:34″_[{“:23″_e,ru:t5″_4,”1″leit%20Tew”N”:mena,”}]uetr”:47″_1,”:54″_],:[3″_3,””}95:”1″”c”,27″1″:c0{“”:19″_},3″”2″:”0:{9″_5,”]]}}%3B”px23:%20htighe:”8″”_”,ceaneroleTagntceer%20permbNulety%20sseonspre:”7″”_”,getaenrcpe:”0″_7,”:11″_7,””}htig”r”:68″_e,ru:t3″_4,”N”IOUTOL”S”:76″_:{5″_5,”}}uetr”:_1,”%24″:”1″_8,”:23″_5,”uetr”:63″_:{5″_5,”Y”NCREUR”C”:73″_:{9″_2,”}}”””:79″_”,002048:”5″_7{“”:_0,””}:”9″_7,”~”gsco”~”:75″_:{6″_5,””}:”9″_7,””””:75″_:{0″_3{“”:_2{“”:20″_,{}}%3B”px23:%20htighe%3B%20e5ad79%20%23r:locod-unrokgac”b”:_8,””}e5ad79″%23″:_9,”N”IOSTUE”Q”:76″_:{5″_5,”}}”””:79″_”,ldsos%20odgof%20%20ostCo:”5″_7{“”:30″_:{2″”_:{0″_2{“[[“:13″_e,lsfa”:41″_},n”owpDro”d”:27″_1,:-5″_2,”{}”:75″_e,lsfa”:82″_:{8″_2,””””:22″_e,lsfa”:35″_e,ru:t6″_3,”{}”:55″_”,leab%20TedtltiUn:”9″_6,”:27″_1,”:18″_5{“:[5″_6{”

c-1. Calculate the difference between cost of goods manufactured and cost of goods sold. (Round “Average cost per unit” to 2 decimal places.)

}uetr”:ontidaliValeabtTarst,”uetr”:ederswAnis,””””:ontiipcres_dab”t},:{2″_6,”0]:[7″_6,”llnu”:51″_l,ul:n6″_2,”{}”:32″_e,lsfa”:etabphAlowShis,”seal:f2″_4,”-1″:50″_1,:-4″_2,”-1″:31″_0,”:_5,”:04″”_e,lsfa”:48″_},:{7″_3,”}]14:27″_7,”59″:34″_[{“:23″_e,ru:t5″_4,”1″leit%20Tew”N”:mena,”}]uetr”:47″_1,”:54″_],:[3″_3,””}92:”1″”c”,80:”0″”c:{9″_1,””}23:”0″{“”:59″_],}]”}x%3B3p%202t:ghei”h”:_8,”e”ncraleTogetaenrcper%20beumeNylste%20nspoes”r”:_7,”e”agntceer”p”:70″_1,”:71″_},t”ghri:”8″_6,”uetr”:43″_”,ONTILUSO:”6″_7{“”:55″_},e}ru:t1″”_”,”%24″:81″_2,”:53″_e,ru:t3″_6{“”:55″_”,CYENRRCU:”3″_7{“”:29″_},”}:”9″_7,”0″7009″4″:75″_:{0″”_},”””:79″_”,1~ffdi”~”:75″_:{6″_5,””}:”9″_7,””””:75″_:{0″_3{“”:_2{“”:20″_,{}}%3B”px23:%20htighe%3B%20e5ad79%20%23r:locod-unrokgac”b”:_8,””}e5ad79″%23″:_9,”N”IOSTUE”Q”:76″_:{5″_5,”}}”””:79″_”,ceenerffDi:”5″_7{“”:30″_:{2″”_:{0″_2{“[[“:13″_e,lsfa”:41″_},n”owpDro”d”:27″_1,:-5″_2,”{}”:75″_e,lsfa”:82″_:{8″_2,””””:22″_e,lsfa”:35″_e,ru:t6″_3,”{}”:55″_”,leab%20TedtltiUn:”9″_6,”:27″_1,”:18″_5{“:[5″_6{”

c-2. How will this amount be reported in the financial statements?

Finished goods inventory
Raw materials inventory
Work in progress inventory

d. Prepare a traditional (absorption) income statement for GrandSlam, Inc., for the month of June. Assume that sales for the month were $1,049,000 and the company’s effective income tax rate was 40%. (Round “Average cost per unit” to 2 decimal places.)

Expert Answer

 

A) CALCULATE COST OF GOODS MANUFACTURED AND AVERAGE COST PER UNIT :

Raw material used 474000
Direct labour 290000
Manufacturing overhead 127700
Cost of goods manufactured 891700
No of units produced 18500
Average cost per unit of manufactured 48.20

B) CALCULATE COST OF GOODS SOLD :

Cost of goods sold = 10000*48.20 = $482000

C1) Difference between cost of goods manufactured and cost of goods sold

Difference = Cost of goods manufactured-cost of goods sold

= 891700-482000

Difference = $409700

C2) AMOUNT REPORTED IN FINANCIAL STATEMENT :

Finished goods inventory 409700
Raw material inventory 0
Work in process inventory 0

d) PREPARE TRADITIONAL INCOME STATMENT :

Sales 1049000
Less: Cost of goods sold (482000)
Gross profit 567000
Less: Selling expenses (156500)
Less: Administrative exp (118500)
Earning before interest and tax 292000
Less : Interest (41100)
Earning before tax 250900
Less: Tax expenses (100360)
Net income 150540

Grand Paper Writers
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All papers are written by the best professional writers to ensure 100% originality. We always provide plagiarism reports whenever we deliver completed papers.

Free Revisions

All papers by Grand Paper Writers are completed and submitted on time. This timely delivery of papers gives you time to go through the paper before the official deadline.

Title-page

As an additional service, we will provide a title page that precedes the contents of your paper. Here, you will provide your personal details.

Bibliography

We also ensure that we provide an extra page for the references or bibliographies following referencing rules.

Originality & Security

At Grandpaperwriters.com, we guarantee students for the provision of security and original work. All your personal information is handled with confidentiality and is not shared with third parties. Additionally, we ensure that we provide original content with accompanying plagiarism reports to show originality.

24/7 Customer Support

Our customer support team is always available 24/7 to provide instant responses to any queries raised by students.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Grandpaperwriters.com has the best professional essay writers for quality services.

Pricing

Flexible Pricing

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Communication

Admission Help & Client-Writer Contact

Grandpaperwriters.com provides an interactive portal where students can communicate directly to their writers.

Deadlines

Paper Submission

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Reviews

Customer Feedback

Grandpaperwriters.com appreciates feedback from our clients to help us improve the delivery of essay writing services. As such, we are constantly changing our policies to ensure maximum customer and writer satisfaction.