Grafton Corporation Manufactures One Product

question 58

Essay

Grafton Corporation manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. Its standard cost per unit produced is $38.85. During the year, the company produced and sold 28,200 units at a price of $50.10 per unit and its selling and administrative expenses totaled $120,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year:
Required:Prepare an income statement for the year.

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Definitions:

Shotty Nodes

Palpable, small, firm lymph nodes that resemble buckshot, often found during physical examinations and typically not indicative of serious illness.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically the order of words and phrases.

Semantics

The study of meaning in language, including the analysis of the meanings of words, phrases, and sentences.

Bonobo

A species of great ape known for its peaceful behavior, matriarchal societies, and complex social interactions; genetically similar to humans.