GrandSlam Incorporated incurred the following costs during March:
During the month, units of product were manufactured and
units of product were sold. On March GrandSlam carried no inventories.
On March there were no inventories for raw materials or work in process.
Required:
a Calculate the cost of goods manufactured during March and the average
cost per unit of product manufactured.
b Calculate the cost of goods sold during March.
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 GrandSlam for the
month of March. Assume that sales for the month was $ and the
company's effective income tax rate was
