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Blue Company on January 1 had inventory costing $ 6 5 , 0 0 0 ; during January, net purchases were $ 1 1 9

Blue Company on January 1 had inventory costing $65,000; during January, net purchases were $119,000. Over recent years, Blue's gross profit has averaged 45% on sales. Assuming that the company has net sales of $190,000, calculate the estimated cost of ending inventory by using the gross profit method.

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