The following accounts and their current balances appear in the ledger of Cerelat Co$.$ at the end of its fiscal year, June $30.$ Cerelat uses a periodic inventory system.

Line Item Description Amount

Cash $$450,000$

Accounts Receivable $650,000$

Inventory $850,000$

Estimated Returns Inventory $15,000$

Office Supplies $8,000$

Prepaid Insurance $8,500$

Office Equipment $900,000$

Accum. Depr.$-$Office Equip. $600,000$

Store Equipment $600,000$

Accum. Depr.$-$Store Equip. $280,000$

Accounts Payable $86,000$

Salaries Payable $45,000$

Customer Refunds Payable $4,000$

Notes Payable $($long$-$term$)100,000$

Owner$$s Capital $600,000$

Owner$$s Drawing $25,000$

Sales $1,600,000$

Purchases $850,000$

Purchases Returns and Allowances $7,000$

Purchases Discounts $3,500$

Freight In $16,000$

Sales Salaries Expense $210,000$

Advertising Expense $100,000$

Depreciation Expense$-$Store Equip. $48,000$

Delivery Expense $22,000$

Office Salaries Expense $130,000$

Rent Expense $60,000$

Depreciation Expense$-$Office Equip. $40,000$

Insurance Expense $11,000$

Office Supplies Expense $9,000$

Miscellaneous Administrative Exp. $12,000$

Interest Expense $15,000$

A physical inventory count at the end of June indicates that $$882,000$ of merchandise is on hand. Estimated Returns Inventory is expected to increase to $$16,500.$ What is the amount of cost of goods sold for Cerelat Co$.$ for the year?

a$.$ $$825,000$

b$.$ $$832,500$

c$.$ $$822,000$

d$.$ $$886,000$