The following information pertains to Franklin Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead.

March 1
Inventory balances
Raw materials	$	124,600
Work in process		119,300
Finished goods		76,000
March 31
Inventory balances
Raw materials	$	85,300
Work in process		146,500
Finished goods		80,600
During March
Costs of raw materials purchased	$	118,900
Costs of direct labor		100,700
Costs of manufacturing overhead		61,700
Sales revenues		351,000

Required

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

2. Calculate the amount of gross margin on the income statement.

FRANKLIN MANUFACTURING COMPANY
Schedule of Cost of Goods Manufactured and Sold
For March Year 3
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

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

Calculate the amount of gross margin on the income statement.

Gross margin