6. SCHOLASTIC BRASS CORPORATION SCHEDULE OF COST OF GOODS SOLD FOR THE MONTH OF MARCH Finished-goods inventory, March 1. Add: Cost of goods manufactured. Cost of goods available for sale. $220,000 34,050 $254,050 237,025 Deduct: Finished-goods inventory, March 31 Cost of goods sold......... $ 17,025 1,800 Deduct: Overapplied overhead* Cost of goods sold (adjusted for overapplied overhead)... $ 15,225 *The company closes underapplied or overapplied overhead into cost of goods sold. Hence the balance in overapplied overhead is deducted from cost of goods sold for the month. 7. SCHOLASTIC BRASS CORPORATION INCOME STATEMENT FOR THE MONTH OF MARCH Sales revenue. $26,600 15,225 Less: Cost of goods sold .................…............. Gross margin................ $11,375 13,000 Selling and administrative expenses. Income (loss)...... $(1,625)