50.1K

Verified Solution

Link Copied!

Maryville Inc. incurred the following costs during August:

Raw materials used	$	33,100
Direct labor		65,200
Manufacturing overhead, actual		44,800
Selling expenses		26,700
Administrative expenses		19,400
Interest expense		9,100

During the month, 5,300 units of product were manufactured and 4,800 units of product were sold. On August 1, Maryville carried no inventories. On August 31, there were no inventories other than finished goods. Required:

• Calculate the cost of goods manufactured during August and 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 Maryville for the month of August. Assume that sales for the month were $244,800 and the companys effective income tax rate was 30%.

a. Calculate the cost of goods manufactured during August and the average cost per unit of product manufactured. b. Calculate the cost of goods sold during August.

a.	Cost of goods manufactured
	Average cost per unit
b.	Cost of goods sold

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

Difference
Amount will be reported in

Prepare a traditional (absorption) income statement for Maryville for the month of August. Assume that sales for the month were $244,800 and the companys effective income tax rate was 30%.

MARYVILLE INC.

Absorption Income Statement

For the month of August

Answer & Explanation Solved by verified expert

See Answer