The following information pertains to Flaxman Manufacturing Company for April. Assume actual overhead equaled applied overhead. April 1 Inventory balances Raw materials $ 123,700 Work in process 119,900 Finished goods 77,800 April 30 Inventory balances Raw materials $ 85,500 Work in process 145,200 Finished goods 81,700 During April Costs of raw materials purchased $ 118,500 Costs of direct labor 100,100 Costs of manufacturing overhead 61,700 Sales revenues 353,000 Required Prepare a schedule of cost of goods manufactured and sold. Calculate the amount of gross margin on the income statement.

Cost of goods manufactured $293,200

Gross margin $63,700

Explanation:

Flaxman manufacturing company

Income statement for April

Sales revenue $353,000

March 1, Inventory balance raw materials

$123,700

Add: raw materials purchased

$118,500

Less April 31, Inventory balance raw materials

$85,500

Raw materials used $156,700

Cost of direct labor

$100,100

Cost of manufacturing overhead

$61,700

Total manufacturing costs $318,500

Add work in process

$119,900

Cost of goods available for manufacturing

$438,400

Less ending work in process

$145,200

Cost of goods manufactured

$293,200

Add finished goods at the beginning

$77,800

Cost of goods available for sale

$371,000

Less finished goods at ending

$81,700

Cost of goods sold

$289,300

Gross margin

$63,700

We arrived at the gross margin by deducting cost of goods sold from sales revenue

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