Hop-Light Brewery purchases custom hops to use in their micro brewery. Last month, Hop-Light had a fire in their drying room, burning the hops, as well as damaging all other brewing ingredients. You work for their insurance company and need to calculate the fire loss. Last month's sales for Hop-Light was $2,600,000. You obtained the following information for all ingredients from Hop-Lights accounting records (all other cost of brewing are immaterial):

Ingredients	Cost
Beginning inventory	$138,500
Last month's purchases	$782,000
Ending inventory	to be calculated
Ingredients returned for refund	$9,600
Accounts Receivables	$56,000
Accounts Payable	$256,000
Cost of goods sold as a percentage of sales	33%

1) Prepare Hop-Light's cost of goods sold statement.

2) Calculate Hop-Light's gross margin percentages.

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