The following information pertains to Flaxman Manufacturing Company for April. Assume actual overhead equaled applied overhead. April 1 Inventory balances Raw materials $ 123,700 Work in process 119,900 Finished goods 77,800 April 30 Inventory balances Raw materials $ 85,500 Work in process 145,200 Finished goods 81,700 During April Costs of raw materials purchased $ 118,500 Costs of direct labor 100,100 Costs of manufacturing overhead 61,700 Sales revenues 353,000 Required Prepare a schedule of cost of goods manufactured and sold. Calculate the amount of gross margin on the income statement.

Cost of goods manufactured $293,200

Gross margin $63,700

Explanation:

Flaxman manufacturing company

Income statement for April

Sales revenue $353,000

March 1, Inventory balance raw materials

$123,700

Add: raw materials purchased

$118,500

Less April 31, Inventory balance raw materials

$85,500

Raw materials used $156,700

Cost of direct labor

$100,100

Cost of manufacturing overhead

$61,700

Total manufacturing costs $318,500

Add work in process

$119,900

Cost of goods available for manufacturing

$438,400

Less ending work in process

$145,200

Cost of goods manufactured

$293,200

Add finished goods at the beginning

$77,800

Cost of goods available for sale

$371,000

Less finished goods at ending

$81,700

Cost of goods sold

$289,300

Gross margin

$63,700

We arrived at the gross margin by deducting cost of goods sold from sales revenue

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.