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

March 1

Inventory balances

Raw materials.......................................$100,000

Work in process.......................................120,000

Finished goods.........................................78,000

March 31

Inventory balances

Raw materials........................................$ 60,000

Work in process.......................................145,000

Finished goods.........................................80,000

During March

Costs of raw materials purchased................$120,000

Costs of direct labor.................................100,000

Costs of manufacturing overhead..................63,000

Sales revenues.......................................380,000

Required

a. Prepare a schedule of cost of goods manufactured and sold.

b. Calculate the amount of gross margin on the income statement.