Problem: 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
Q1. Prepare a schedule of costs of goods manufactured and sold.
Q2. Calculate the amount of gross margin on the income statement.