# Big Thunder

Big Thunder Co. incurred the following costs during April:
Raw materials purchased \$ 40,950
Direct labor (\$13 per hour) 57,850
Selling expenses 31,080

Interest expense 6,017

Manufacturing overhead is applied on the basis of \$21 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to cost of goods sold only at the end of the year. During the month, 4,160 units of product were manufactured and 4,530 units of product were sold. On April 1 and April 30, Big Thunder Co. carried the following inventory balances:
April 1…… April 30
Raw materials \$ 19,400 \$ 17,400
Work in process 52,500 57,800
Finished goods 40,800 23,994

a) Prepare a statement of cost of goods manufactured for the month of April.
BigThunder Co.
Statement of Cost of Goods Manufactured
For the month of April

Raw materials:
Inventory, April 1 \$
Purchases during April \$
Raw materials available for use \$
Less: Inventory, April 30 \$
Cost of Raw materials used \$
Direct Labor cost incurred \$
Total manufacturing cost \$
Add: Work in process, April 1 \$
Less: Work in process, April 30 \$
cost of goods manufactured, April \$

Cost per unit \$

Requirement 2:
Cost of goods sold \$

Requirement 3:
(a) Calculate the difference between cost of goods manufactured and cost of goods sold. (Do not round your intermediate calculations. Round your answer to the nearest dollar amount. Input the amount as positive value. Omit the “\$” sign in your response.)
Difference \$

Requirement 4:
Prepare a traditional (absorption) income statement for Big Thunder Co. for the month of April. Assume that sales for the month were \$287,800 and the company’s effective income tax rate was 29%. (Amounts to be deducted should be indicated with minus sign. Do not round your intermediate calculations. Round your answer to the nearest dollar amount. Omit the “\$” sign in your response.)
BigThunder Co.
Absorption Income Statement
For the month of April

Sales \$
Cost of goods sold \$
Gross profit \$