Question

The following information pertains to Flaxman Manufacturing Company for March 2015. Assume actual overhead equaled applied overhead. $ 124,400 118,600 76,700 March 1 Inventory balances Raw materials Work in process Finished goods March 31 Inventory balances Raw materials Work in process Finished goods During March Costs of raw materials purchased Costs of direct labor Costs of manufacturing overhead Sales revenues $ 86,500 146,300 81,700 $ 119,300 101,300 61,200 353,000 Required: a. Prepare a schedule of cost of goods manufactured and sold. FLAXMAN MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold For March 2015 Raw materials available for use Direct raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Cnet of anode cold b. Calculate the amount of gross margin on the income statement. Gross margin

Answer 1

Solution

FLAXMAN MANUFACTURING COMPANY
Schedule of cost of goods Manufacturing and sold
For March 2015
Beginning raw material Invnetory	$   124,400.00
Raw material Purchases	$   119,300.00
Raw material available for use	$   243,700.00
Less: Ending raw material Inventory	$      86,500.00
Direct material used	$   157,200.00
Direct labor	$   101,300.00
Manufacturing Overhead	$      61,200.00
Total Manufacturing costs	$   319,700.00
Add: Beginning work in process	$   118,600.00
Total Work in process inventory	$   438,300.00
Less: Ending work in process Inventory	$   146,300.00
Cost of goods manufactured	$   292,000.00
Add: Beginning finished goods inventory	$      76,700.00
Cost of goods available for sale	$   368,700.00
Less: Ending finished goods inventory	$      81,700.00
Cost of goods sold	$   287,000.00

.

Gross margin

$      66,000.00

Working

Sales revenues	$   353,000.00
Cost of goods sold	$   287,000.00
Gross margin	$      66,000.00