Gimli Axe Makers Cost of Sales For the Year Ended December 31, 2008 Beginning Inventory Net Purchases* Freight In Direct labour Cost of Goods Available for Sale Ending Inventory Cost of Sales Net Purchases Purchase Discounts Purchase R&A's $8,940,000 $205,000 $65,000 $1,580,000 $0 $267,000 $400,000 $2,247,000 $1,510,000