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Cost of goods sold manufactured and sold

The following information pertains to Bluegrass Manufacturing Company for March 2003. Assume actual overhead equaled applied overhead.

March 1
Inventory Balances
Raw Materials 95,000
Work in Process 120,000
Finished Goods 78,000

March 31
Inventory Balances
Raw Materials 60,000
Work in Process 145,000
Finished Goods 80,000

During March
Cost of raw materials purchased 120,000
Costs of direct labor 100,000
Costs of Manufacturing Overhead 63,000
Sales Revenue 310,000

A. Prepare a schedule of costs of goods manufactured and sold.
B. Calculate the amount of gross margin on the income statement.

Solution Preview

COST OF GOODS manufactured SCHEDULE

in $
OPENING Inventory
RAW MATERIAL 95000
WIP 120000
215000
ADD
RAW MATERIAL PURCHASES 120000
DIRECT ...

Solution Summary

The solution calculates the cost of goods sold by Bluegrass Manufacturing.

$2.19