[7] There was a fire at the DEF, Inc. warehouse burning down a significant amount of the company's inventory. The controller decided to use the gross profit method to determine ending inventory. Prior gross margin percentage was always 55% to 60%. Prepare an analysis showing the range of ending inventory using this method.

sales (per the income statement) $2,500,400

Beginning Inventory (per balance sheet) $400,000

Purchases during the year $1,800,550