The following information is available for Cooke Company for 2006:
|
Net sales |
$1,800,000 |
|
Freight-in |
45,000 |
|
Purchase discounts |
25,000 |
|
Ending inventory |
120,000 |
The gross margin is 40% of net sales. What is the cost of goods available for sale?
- $ 840,000
- $ 960,000
- $1,200,000
- $1,220,000