Consider the following inventory data for two companies:

........................................Nichols, inc.................Winters, Inc.

Beginning inventory..................$120,000......................$150,000

Ending inventory..........................80,000.......................100,000

Purchases.................................240,000.......................310,000

If both companies use periodic inventory system, what is the Cost of Goods Sold for Nichols, Inc.?

a. $200,000

b. $280,000

c. Cannot determine with the information given.

d. $360,000