Milton Company reported inventory of $60,000 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 $50,000. Required: 1. What was Milton's cost of goods sold for 2014? 2. What is Milton's gross margin for the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Milton Company reported inventory of $60,000 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 $50,000.

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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