Applying the Cost of Goods Sold Model

Milton Company reported inventory of $60,000 at the beginning of 2013. 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 2013? $

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