Monica Company owns 75% of the common stock of Johnson, Inc. In the current year, Monica reports sales of $9,800,000 and cost of goods sold of $7,400,000. For the same period, Johnson has sales of $225,000 and cost of goods sold of $173,000. During the year, Monica sold merchandise to Johnson for $53,000 at a price based on the normal markup. At the end of the year, Johnson still possesses 20% of this inventory.

a. Compute consolidated sales.

b. Compute consolidated cost of goods sold.