The following information pertains to Bairoil Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead. March 1 Inventory balances. Raw materials Work in process Finished goods March 31 Inventory balances Raw materials Work in process $200,000 240,000 156,000 $120,000 290,000 Finished goods 160,000 During March Costs of raw materials purchased Costs of direct labor $240,000 200,000 Costs of manufacturing overhead Sales revenues 126,000 760,000 Required a. Prepare a schedule of cost of goods manufactured and sold. b. Calculate the amount of gross margin on the income statement.