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

FLAXMAN MANUFACTURING COMPANY

Schedule of Cost of Goods Manufactured and Sold

For March 2015

Raw materials available for use

Direct raw materials used

Total manufacturing costs

Total work in process inventory

Cost of goods manufactured

Cost of goods available for sale

Cost of goods sold

a.	Prepare a schedule of cost of goods manufactured and sold.

FLAXMAN MANUFACTURING COMPANY

Schedule of Cost of Goods Manufactured and Sold

For March 2015

Raw materials available for use

Direct raw materials used

Total manufacturing costs

Total work in process inventory

Cost of goods manufactured

Cost of goods available for sale

Cost of goods sold

b.	Calculate the amount of gross margin on the income statement. Gross margin=