Lorna Company Has the Following Data Available The Estimated Cost of the Ending Inventory Using the Gross

Multiple Choice

Lorna Company has the following data available: $$\begin{array} { | l | r | } \hline \text { Beginning inventory } & \$ 170,000 \\\hline \text { Net purchases } & \$ 500,000 \\\hline \text { Net sales } & \$ 900,000 \\\hline \text { Gross profit percentage } & 60 \% \\\hline\end{array}$$
The estimated cost of the ending inventory using the gross profit method is ________.

A) $310,000
B) $540,000
C) $360,000
D) $670,000