E8.19 (LO 3) (Gross Profit Method) Presented below is information related to Jerrold Ltd. for the current year.

Beginning inventory £ 600,000 Purchases 1,500,000 Total goods available for sale £2,100,000 Sales 2,300,000 Instructions Compute the ending inventory, assuming that

(a) gross profit is 40% of sales,

(b) gross profit is 60% of cost,

(c) gross profit is 35% of sales, and

(d) gross profit is 25% of cost.