Applying the Cost of Goods Sold Model The following amounts were obtained from the accounting records of Wachter Sports Products Inc.: Required: Compute the missing amounts. Net sales Cost of goods sold: Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Year I 104,250 00 6,940 104,730 $28,600 Year 2 $154,810 $127,500 $38,980