Marshall Inc. experiences a fire in its warehouse at the end of the year, which destroys its entire inventory. Marshall's records show that it started the year with $35,000 of inventory and purchased $150,000 during the year. It also shows sales of $310,000 for the year. Normally, Marshall's experiences a 55% gross profit percentage on sales.
Required
Use the gross profit method to estimate Marshall's cost of goods sold and ending inventory.