Calculate COGS for 20X2 based on the following information:

Inventory at 31 December 20X1: $125,000

Inventory at 31 December 20X2: $100,000

Inventory purchases in 20X1: $475,000

Inventory purchases in 20X2: $500,000

Depreciation expense on corporate headquarters in 20X2: $50,000

Interest expense in 20X2: $25,000

Select one:

a. $975,000

b. $1,050,000

c. $1,000,000

d. $575,000

e. $525,000