Applying the Cost of Goods Sold Model Milton Company reported inventory of \(\$ 60,000\) at the beginning of 2018. 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 \(\$ 50,000\).

\section*{Required:}

1. What was Milton's cost of goods sold for 2018 ?

2. What is Milton's gross margin for the year?

\section*{Brief Exercise