Magic Carpets began the year with year was $7,000,000, and the gross margin was 45 percent. How much is Magic Carpets' estimated cost of ending he 000. Sales revenue for tthe year totalled $3,200,Inventory purchases for of $1,400,000. inventorythe gross margin method.inventory? Use 5

Estimating ending inventory by the gross margin method

Estimated cost of ending inventory, $750,000