Maryville, Inc., incurred the following costs during August: Raw materials used $ 39,700 Direct labor 68,900 Manufacturing overhead, actual 42,600 Selling expenses 26,530 Administrative expenses 13,970 Interest expense 9,700 During the month, 5,600 units of product were manufactured and 4,000 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 inventory Work in progress inventory Raw materials inventory d. Prepare a traditional (absorption) income statement for Maryville, Inc., for the month of August . Assume that sales for the month were $264,867 and the company’s effective income tax rate was 40%.
