Homework SourseExercise 1014 Cost of goods manufactured and sold LO 105 The
Exercise 10-14 Cost of goods manufactured and sold LO 10-5 The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 125,000 Work in process 118,900 Finished goods 77,200 March 31 Inventory balances Raw materials $ 86,700 Work in process 146,200 Finished goods 80,500 During March Costs of raw materials purchased $ 119,000 Costs of direct labor 101,900 Costs of manufacturing overhead 62,700 Sales revenues 359,000 Required Prepare a schedule of cost of goods manufactured and sold. Calculate the amount of gross margin on the income statement.
Solution
Prepare a schedule of cost of goods manufactured and sold.
Calculaate gross margin :
Gross margin = Sales-Cost of goods sold
= 359000-291300
Gross margin = 67700
| Beginning work in process | 118900 | ||
| Beginning raw material | 125000 | ||
| Raw material purchase | 119000 | ||
| Less: Ending raw material | -86700 | ||
| Direct material used | 157300 | ||
| Direct labour | 101900 | ||
| Manufacturing overhead | 62700 | ||
| Total manufacturing cost | 321900 | ||
| Total cost of work in process | 440800 | ||
| Less: Ending work in process | -146200 | ||
| Cost of goods manufactured | 294600 | ||
| Beginning finished goods inventory | 77200 | ||
| Total cost of goods available for sale | 371800 | ||
| Less: Ending finished goods inventory | -80500 | ||
| Cost of goods sold | 291300 |
