Based on the following data, estimate the cost of the ending merchandise inventory: Sales (net) ................ $1,450,000

Question:

Based on the following data, estimate the cost of the ending merchandise inventory:
Sales (net) ................ $1,450,000
Estimated gross profit rate ........ 42%
Beginning merchandise inventory ..... $ 100,000
Purchases (net) .............. 860,000
Merchandise available for sale ....... $ 960,000