Job-order costing in a manufacturing company Agu Advertisements Corporation designs and produces television commercials for clients. On March 1, 2012, the company issued common stock for $75,000 cash. During March, Agu worked on three jobs. Pertinent data follow.

Actual production overhead cost: $24,080
Predetermined overhead rate: $16 per direct labor hour
Agu paid these costs in cash. Jobs 301 and 302 were completed and sold for cash to customers during March. Job 303 was incomplete at month end. Job 301 sold for $32,000, and Job 302 sold for $45,000.
Agu also paid $8,000 cash in March for selling and administrative expenses. Agu uses a just-in-time inventory management system. Consequently, it has no raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account.
Required
a. Use a horizontal financial statements model, as follows, to record Agu's accounting events for March 2012. The first event is shown as an example.

b. Record the entry to close the amount of underapplied or overapplied manufacturing overhead to Cost of Goods Sold (in the expense category) in the horizontal financial statements model.
c. Determine the gross margin for March.

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Special Orders Materials Labor Job 301 Job 302 Job 303 450 hours @ $32 per hour 360 hours @ $60 per hour 680 hours @ $28 per hour $3,600 6,480 5,840