The following information pertains to Bairoil Manufacturing Company for March 2019. Assume actual overhead equaled applied overhead.
March 1
Inventory balances
Raw materials............................................................... $200,000
Work in process.............................................................. 240,000
Finished goods...............................................................156,000
March 31
Inventory balances
Raw materials............................................................. $120,000
Work in process............................................................290,000
Finished goods............................................................ 160,000
During March
Costs of raw materials purchased........................................$240,000
Costs of direct labor........................................................ 200,000
Costs of manufacturing overhead........................................ 126,000
Sales revenues...............................................................760,000
Required
a. Prepare a schedule of cost of goods manufactured and sold.
b. Calculate the amount of gross margin on the income statement.