Gibson Corporation makes custom$-$order furniture to meet the needs of persons with disabilities. On January $1,$ Year $2,$ the company had the following account balances: $$86,000$ for both cash and common stock. In Year $2,$ Gibson worked on three jobs. The relevant direct operating costs follow.

Direct Labor Direct Materials

Job $1$ $ $4,000$ $ $5,200$

Job $22,3001,900$

Job $38,5004,100$

Total $ $14,800$ $ $11,200$

Gibson$$s predetermined manufacturing overhead rate was $$0\mathrm{.}40$ per direct labor dollar. Actual manufacturing overhead costs amounted to $$5,680.$ Gibson paid cash for all costs. The company completed and delivered Jobs $1$ and $2$ to customers during the year. Job $3$ was incomplete at the end of the year. The company sold Job $1$ for $$16,700$ cash and Job $2$ for $$8,500$ cash. Gibson also paid $$3,600$ cash for selling and administrative expenses for the year.

Gibson uses a just$-$in$-$time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. REQUIRED: Record the preceding events in a horizontal statements model. The first row shows beginning balances.

REQUIRED: Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold $($in the expense category$)$ in the horizontal financial statements model.

REQUIRED: Determine the gross margin for the year.