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

March 1
Inventory balances
Raw materials	$	124,100
Work in process		119,800
Finished goods		77,900
March 31
Inventory balances
Raw materials	$	86,300
Work in process		146,300
Finished goods		81,400
During March
Costs of raw materials purchased	$	119,800
Costs of direct labor		100,000
Costs of manufacturing overhead		61,900
Sales revenues		352,000

Required

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

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