Calculate Inventory For the wholesale division, Devin uses the dollar value LIFO method of inventory. The base year established for LIFO is 2014. The inventory at the end of 2014 was calculated as $1,040,500. For the next 3 years you have the following information:

	Ending inventory counted at cost	Price level increase from 2014	Net Purchases	Net Sales
2015	1,085,000	3%
2016	1,091,000	5%	$2,935,000	$5,456,000
2017	1,398,000	10 %

1. Calculate the cost of goods sold and the gross margin for 2016.