E9-17B (Gross Profit Method) Presented below is information related to Isaac Corporation for the current year. Beginning inventory

E9-17B (Gross Profit Method) Presented below is information related to Isaac Corporation for the current year.

Beginning inventory                        $ 400,000

Purchases                                      2,600,000

Total goods available for sale                                               $3,000,000

Sales                                                                                       3,500,000

Instructions

Compute the ending inventory, assuming that (a) gross profit is 25% of sales; (b) gross profit is 50% of cost; (c) gross profit is 40% of sales; and (d) gross profit is 25% of cost.