DE9-17 Answer the following questions. 1. Asamax Insulation Company began the year with inventory of $350,000. Inventory pur- chases for the year totaled $1.600.000. Asamax managers estimate that cost of goods sold for the year will be $1,800,000. How much is Asamax's estimated cost of ending inven- tory? Use the gross profit method. 2. Cyrus Roofing, a related company, began the year with inventory of $350.000 and pur- chased $1,600.000 of goods during the year (the same as in requirement 1). Sales for the year are $3,000.000. and Cyrus's gross profit percentage is 40% of sales. Compute Cyrus's estimated cost of ending inventory by the gross profit method. Compare this answer to your answer in requirement 1: they should be the same. Focus on the computation of estimated cost of goods sold to explain why the two answers are the same.