The following information pertains to Flaxman Manufacturing Company for March 2015.
Assume actual overhead equaled applied overhead.
March 1
Inventory balances
Raw materials .......... $100,000
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
Costs of raw materials purchased ... $120,000
Costs of direct labor ........ 100,000
Costs of manufacturing overhead .. 63,000
Sales revenues ........... 380,000

Required
a. Prepare a schedule of cost of goods manufactured and sold.
b. Calculate the amount of gross margin on the incomestatement.

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Assets -Equity Cash MOH Raw M. WIP F. Goods C. Stk. Ret. Ear. Rev. Exp. Net Inc. 2,000 + NA + NA + NA + NA = 2,000 + NA NA - NA = NA