Cost of goods manufactured, costs of goods sold, and income statement:
Gravois, Inc. incurred the following costs during June:
Please see the attached PDF document for the chart.
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.
a. Calculate the cost of goods manufactured during June and the average cost per unit of product manufactured.
b. Calculate the cost of goods sold during June
c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?
This solution illustrates how to calculate the cost of goods manufactured and the average cost per unit of product manufactured as well as the cost of goods sold.