AAA Plumbing Co During the Month, 9,000 Units of Product Were Manufactured and Raw

Essay

AAA Plumbing Co.incurred the following costs during August:
$\begin{array}{lr}\text { Raw materials } & \$ 90,000 \\\text { Direct labor } & 230,000 \\\text { Manufacturing overhead } & 112,000 \\\text { Selling expenses } & 70,800 \\\text { Administrative expenses } & 45,200 \\\text { Interest expense } & 25,000\end{array}$
During the month, 9,000 units of product were manufactured and 8,500 units of product were sold.On August 1, AAA Plumbing carried no inventories.
(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.)Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?