Gross Profit Method Based on the following data, estimate the cost of the ending merchandise inventory: Sales Estimated gross profit rate Beginning merchandise inventory Purchases (net) Merchandise available for sale $4,400,000 42% $2,535,000 257,000 $2,792,000 Cost of Ending Merchandise Inventory Cost of merchandise sold 2,792,000 Less cost of merchandise sold 4,381,520 X Estimated ending merchandise inventory 1,589,520 X Feedback Check My Work Merchandise available for sale - estimated cost of merchandise sold estimated cost of inventory. Recall that the estimated cost of merchandise sold is calculated by subtracting the estimated gross profit from the sales.