The following information pertains to Thornton 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 Finished goods During March $123,800 119,300 76,900 $ 86,500 145,100 81,900 Costs of raw materials purchased Costs of direct labor $119,900 101,200 Costs of manufacturing overhead Sales revenues 61,000 351,000 Required a. Prepare a schedule of cost of goods manufactured and sold. b. Calculate the amount of gross margin on the income statement.