B. Compute the estimated inventory at may 31, assuming that the gross profit is 25%of cost?

Novak 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 $ 147,800 Purchases (gross) 637,400 Freight-in 31,000 Sales revenue 953,600 Sales returns 72,200 Purchase discounts 11,900 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $ Type here to search O O w 9:32