Gravois, Inc., incurred the following costs during June: Selling expenses $ 158,
ID: 2347833 • Letter: G
Question
Gravois, Inc., incurred the following costs during June: Selling expenses $ 158,375 Direct labor 283,140 Interest expense 41,065 Manufacturing overhead, actual 204,750 Raw materials used 460,980 Administrative expenses 123,000 During the month, 19,500 units of product were manufactured and 11,000 units of product were sold. On June 1, Gravois, Inc., carried no inventories. On June 30, there were no inventories for raw materials or work in process. Requirement 1: Calculate the cost of goods manufactured during June and the average cost per unit of product manufactured. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Cost of goods manufactured $ Average cost per unit $ Requirement 2: Calculate the cost of goods sold during June. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) Cost of goods sold $ Requirement 3: (a) Calculate the difference between cost of goods manufactured and cost of goods sold. (Round your intermediate calculations to 2 decimal places. Input the amount as positive value. Omit the "$" sign in your response.) Difference $ (b) How will this amount be reported in the financial statements? The difference between cost of goods manufactured and cost of goods sold is in the account on the balance sheet. Requirement 4: Prepare a traditional (absorption) income statement for Gravois, Inc., for the month of June. Assume that sales for the month were $1,035,000 and the company's effective income tax rate was 35%. (Amounts to be deducted should be indicated with minus sign. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) Gravois, Inc. Absorption Income Statement For the month of June sales $ cost of goods sold$ gross profit $ selling and administrative expenses $ operating income $ interest expense $ income before taxes $ income tax expensive $ Net Income $Explanation / Answer
1. Cost of goods manufactured 535260 Average 48.66 2. Cost of goods sold 857700 3. (A) 322440 (B). In financial statements this will be shown as selling & administrative overheads. 4. Sales = 1035000 Less: COGS = 857700 Income = 177300 Less: Tax = 62055 NET INCOME = 115245.
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