Astaire 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 $160,000 Purchases (gross) 640,000 Freight-in 30,000 Sales 1,000,000 Sales returns 70,000 Purchase discounts 12,000 1.Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. 2.Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost.