Hay Company had January 1 inventory of $300,000 when it adopted dollar-value LIFO. During the year, purchases were $1,800,000 and sales were $3,000,000. December 31 inventory at year-end prices was $379,500, and the price index was 110. What is Hay Companys gross profit? please show work

a. 1,279,500

b. 1,245,000

c. 2,650,500

d. 1,249,500