Reference no: EM131891115

Question - Maryville, Inc., incurred the following costs during August:

Raw materials used $32,900

Direct labor 78,600

Manufacturing overhead, actual 45,300

Selling expenses 29,330

Administrative expenses 15,870

Interest expense 9,600

During the month, 5,600 units of product were manufactured and 4,700 units of product were sold. On August 1, Maryville, Inc., carried no inventories. On August 31, there were no inventories other than finished goods.

Required:

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.

c-1. Calculate the difference between cost of goods manufactured and cost of goods sold.

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

Finished goods inventoryWork in progress inventoryRaw materials inventoryd. Prepare a traditional (absorption) income statement for Maryville, Inc., for the month of August . Assume that sales for the month were $299,257 and the company's effective income tax rate was 30%.