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    Cost of goods sold manufactured and sold

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    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.

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    Solution Preview

    COST OF GOODS manufactured SCHEDULE

    in $
    OPENING Inventory
    RAW MATERIAL 95000
    WIP 120000
    DIRECT ...

    Solution Summary

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