The following information pertains to Fanning Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead.

March 1
Inventory balances
Raw materials	$	123,000
Work in process		118,600
Finished goods		76,000
March 31
Inventory balances
Raw materials	$	86,800
Work in process		145,500
Finished goods		81,600
During March
Costs of raw materials purchased	$	119,600
Costs of direct labor		101,000
Costs of manufacturing overhead		61,200
Sales revenues		351,000

Required

Prepare a schedule of cost of goods manufactured and sold.

FANNING MANUFACTURING COMPANY
Schedule of Cost of Goods Manufactured and Sold
For March Year 3
Raw materials available for use
Direct raw materials used
Total manufacturing costs
Total work in process inventory
Cost of goods manufactured
Cost of goods available for sale
Cost of goods sold

Calculate the amount of gross margin on the income statement.

Gross margin