Cost of Goods Manufactured and Sold
The following information pertains to Piece of Mind Pie for March 20XX
March 1
Inventory balances
Raw materials	$100,700
Work in process	$120,000
Finished goods	$78,000
March 31
Inventory balances
Raw materials	$59,300
Work in process	$145,000
Finished goods	$80,000
During March
Costs of raw materials purchased	$119,300
Costs of direct labor	$100,000
Costs of manufacturing overhead	$63,000
Sales revenues	$380,700
Required
a. Prepare a schedule of cost of goods manufactured and sold.
b. Calculate the amount of gross margin on the income statement.
Piece of Mind Pie
Schedule of Cost of Goods Manufactured and Sold for March 20XX
Beginning raw materials inventory
Purchases
Raw materials available for Use
Ending raw materials inventory
Direct raw materials used
Direct labor
Overhead (actual)
Total manufacturing costs
Beginning WIP inventory
Total WIP inventory
Ending WIP inventory
Cost of goods manufactured
Beginning finish. goods inventory
Cost of goods available for sale
Less ending finished goods inventory
Cost of goods sold
b.
Sales revenues
Cost of goods sold
Gross margin/profit