Question

The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead.

March 1

Inventory balances

Raw materials $ 124,600

Work in process 119,200

Finished goods 76,300

March 31

Inventory balances

Raw materials $ 85,400

Work in process 146,100

Finished goods 80,800

During March

Costs of raw materials purchased $ 119,100

Costs of direct labor 101,800

Costs of manufacturing overhead 62,900

Sales revenues 355,000

Required

Prepare a schedule of cost of goods manufactured and sold.

Calculate the amount of gross margin on the income statement.

FLAXMAN MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold For March 2018 Raw materials available for use ok Direct raw materials used nt ences Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Cost of goods sold

Answer 1

FLAXMAN MANUFACTURING COMPANY
Schedule of Cost of Goods Manufactured and Sold
For March 2018
Beginning raw materials inventory	$124,600
Purchases	$119,100
Raw materials available for use    [$124,600 + $119,100]	$243,700
Ending raw materials inventory	$85,400
Direct raw materials used              [$243,700 - $85,400]	$158,300
Direct labor	$101,800
Manufacturing overhead	$62,900
Total manufacturing costs        [$158,300 + $101,800 + $62,900]	$323,000
Beginning work in process inventory	$119,200
Total work in process inventory          [$323,000 + $119,200]	$442,200
Ending work in process inventory	$146,100
Cost of goods manufactured                  [$442,200 - $146,100]	$296,100
Beginning finished goods inventory	$76,300
Cost of goods available for sale               [$296,100 + $76,300]	$372,400
Ending finished goods inventory	$80,800
Cost of goods sold           [$372,400 - $80,800]	$291,600