P Corporation owns 75% of the voting common stock of S Corporation, acquired at book value during 2001.Selected information from the accounts of Parent and Sub for 20X2 are as follows:

Sales

$1,800,000 Parent

$1,000,000. Sub

Cost of Sales

980,000 Parent

380,000 Sub

During 20X2, Parent sold merchandise to Sub for $100,000, at a gross profit to Parent of $40,000.Half of this merchandise remained in Sub's inventory at December 31, 20X2.Sub's December 31, 20X1 inventory included unrealized profit of $8,000 on goods acquired from Parent.

What is consolidated cost of sales