Truman Company started the accounting period with the following beginning balances in 2014: Raw materials, $32,000; Work in process, $80,000; Finished goods, $10,000 During the accounting period, the company purchased $50,000 of raw materials and ended the period with $6,000 in raw material inventory. Direct labor costs for the period were $110,000 and $26,000 of manufacturing overhead costs was allocated to work in process. There was no over or underapplied overhead. Ending work in process was $72,000 and ending finished goods inventory was $25,000. Goods were sold during the period for revenue of $340,000. How much gross margin would be reported in 2014?

a) $155,000

b) $120,000

c) $135,000

d) $181,000