Use the following data to compute the estimated inventory cost for Sloan Company under the gross profit

Question:

Use the following data to compute the estimated inventory cost for Sloan Company under the gross profit method:
Average gross profit rate: 30% of sales
Inventory on January 1 (at cost): $460,000
Purchases from January 1 to date of inventory estimate: $2,080,000
Net sales for period: $2,600,000