At the end of December 31, 2012, Centennial Company's accounts are as follows. Purchases $175,000 Salaries 80,000 Advertising 3,000 Travel 2,000 Revenue 350,000 Finance costs 10,000 Freight-in 2,000 Income tax expense 13,000 Sales commission 2,000 Depreciation 38,000 1. Cost of sales is