Brief Exercise 6-33 (Algorithmic) Applying the Cost of Goods Sold Model Milton Company reported inventory of $137,000 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 $82,200. Required: 1. What was Milton's cost of goods sold for 2014? 697,800 2. What is Milton's gross margin for the year? 298,000 X