Question

The following information pertains to Big Three Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead.

March 1
Inventory balances
Raw materials	$	12,707
Work in process		17,429
Finished goods		9,476
March 31
Inventory balances
Raw materials	$	11,843
Work in process		13,186
Finished goods		7,887
During March
Costs of raw materials purchased	$	63,497
Costs of direct labor		20,288
Costs of manufacturing overhead		12,279
Sales revenues		193,247

The gross profit is $______________

Answer 1

The gross profit is $ 90,487

Working

Schedule of Cost of Goods Manufactured
Direct Material
Raw material Inventory Beginning	$        12,707.00
Raw material Purchased	$        63,497.00
Raw material available for use	$        76,204.00
Less: Raw material Inventory Ending	$        11,843.00
Direct Material Used		$         64,361.00
Direct labor		$         20,288.00
Total Manufacturing overheads		$         12,279.00
Total manufacturing Cost During the month		$         96,928.00
Add: Work in process Beginning		$         17,429.00
Total Work in Process		$      114,357.00
Less: Work in progress Ending		$         13,186.00
Cost of Goods Manufactured		$      101,171.00

.

Schedule of cost of goods sold
Beginning Finished Goods Inventory		$           9,476.00
Add: Cost of goods manufactured		$      101,171.00
Goods Available for sale		$      110,647.00
Less :Ending Finished goods Inventory		$           7,887.00
Cost of Goods Sold		$      102,760.00

.

Income statement (Partial)
Sales revenue		$      193,247.00
Less: Cost of goods sold		$      102,760.00
Gross profit		$         90,487.00