When preparing its quarterly financial statements, Pace Company uses the gross margin method to estimate ending inventory. The following information is available for the quarter ending March 31, Year 2:

Beginning inventory $222,500

Purchases $787,000

Sales $1,083,500

Estimated gross margin percentage 45%

What is the estimated amount of inventory that is on hand on March 31, Year 2?

Multiple Choice

$413,575

$595,925

$555,225

$454,275