Brighton Ltd does not maintain detailed records of the cost of goods sold and finds the closing inventory by a physical stocktake. You are approached to help management calculate the cost of goods sold and gross profit if sales are $1,008,000, inventory at the beginning is $87,300, purchases of inventory are $247,500 and inventory at the end is $58,500. Please answer the next two sub-questions base on the information provided.

A. What is the balance of the cost of goods sold?

B. What is the balance of the gross profit?