Marks Manufacturing Company has the following beginning balances:
Materials inventory ................................. $100,000
Work in process ..................................... 370,000
Finished goods ....................................... 60,000
During the period, the following occurred:
1. Purchased for cash $872,000 worth of raw materials. Delivery charges on these materials equaled $22,000.
2. Used $565,000 worth of direct labor in the production process.
3. Used $900,000 worth of materials in the production process.
4. The following costs were incurred:

5. Transferred $2,035,000 worth of work in process inventory to finished goods inventory.
6. Sales were $2,600,000.
7. The ending balance in Finished Goods Inventory was $93,000.
Required
a. Calculate the Ending Materials and Work in Process Inventory balances.
b. What was Marks Manufacturing's gross margin during the period?

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Indirect labor Factory supplies used Property taxes and insurance Depreciation-factory $27,000 46,000 14,000 54,000 Factory utilities Depreciation-manufacturing Selling and administrative $147,000 46,000 28,000