The following information pertains to Bairoil Manufacturing Company for March 2019. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 200,000 Work in process 240,000 Finished goods 156,000 March 31 Inventory balances Raw materials $ 120,000 Work in process 290,000 Finished goods 160,000 During March Costs of raw materials purchased $ 240,000 Costs of direct labor 200,000 Costs of manufacturing overhead 126,000 Sales revenues 760,000

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

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