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Question: Applying the Cost of Goods Sold Model
Milton Company reported inventory of $79,000 at the beginning of 2014. During the year, it purchased inventory of $625,000 and sold inventory for $950,000. A count of inventory at the end of the year determined that the cost of inventory on hand was $31,600.
Required: 1. What was Milton's cost of goods sold for 2014?
2. What is Milton's gross margin for the year?
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