Between January 1 and April 30, a Company's Sales Amounted

Essay

Between January 1 and April 30, a company's sales amounted to $140,000 and its purchases amounted to $120,000. The January 1 inventory was $34,000. Using the gross margin method, what is a reliable estimate of the April 30 inventory if the prior period's gross margin has been:
(a) 40 percent based on cost? April ending inventory is $_____________.
(b) 40 percent based on selling prices? April ending inventory is $_____________.