Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
| Inventory, May 1 |
$ 177,100 |
| Purchases (gross) |
642,400 |
| Freight-in |
30,100 |
| Sales revenue |
1,052,000 |
| Sales returns |
81,600 |
| Purchase discounts |
12,500 |
(a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales.
(b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)