The following information pertains to Flaxman Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 124,500 Work in process 118,800 Finished goods 76,300 March 31 Inventory balances Raw materials $ 85,400 Work in process 145,400 Finished goods 80,100 During March Costs of raw materials purchased $ 118,400 Costs of direct labor 100,800 Costs of manufacturing overhead 61,800 Sales revenues 359,000
Calculate the amount of gross margin on the income statement.

Gross Profit   $ 69,300

Explanation:

Flaxman Manufacturing Company

Income Statement

Sales revenues                                                      359,000

March 1 Opening Inventory Raw materials $ 124,500

Add Costs of raw materials purchased $ 118,400

Less March 31 Ending Inventory  Raw materials $ 85,400

Cost of Materials Used  157,500

Add Costs of direct labor 100,800

Add Costs of manufacturing overhead 61,800

Total Manufacturing Costs 320,100

Add March 1 Opening Work in process 118,800

Cost of Goods Available for Manufacture 438,900

Less March 31 Ending Work in process 145,400  

Cost of Goods Manufactured  293,500

Add March 1 Opening Finished goods 76,300

Cost of Goods Available for Sale 369,800

Less March 31 Ending Finished goods 80,100

Cost of Goods Sold                                             (289,700)

Gross Profit                                                           69,300

Gross Margin is also known as gross profit. It is the income before the operating expenses and is obtained by subtracting Cost Of Goods Sold from Sales.We obtain the COGS by doing the above operations.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; strategic planning;