(A) Coronado 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		$ 156,000
Purchases (gross)		663,700
Freight-in		31,500
Sales revenue		1,061,800
Sales returns		72,100
Purchase discounts		13,100

Compute the estimated inventory at May 31, assuming that the gross profit is 30% of net sales.

Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.

(B) Wildhorse Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the companys merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $38,800 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

		Cost			Retail
Inventory, Jan. 1, 2017		$38,800			$59,400
Markdowns (net)					13,300
Markups (net)					22,200
Purchases (net)		129,600			179,400
Sales (net)					164,900

Determine the cost of the 2017 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method.