Big Bird uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of July.

Sales revenue	$620,000
Inventory, July 1	99,200
Purchases (gross)	369,800
Freight-in	15,200
Freight-out	18,600
Sales returns	34,400
Purchase returns	7,440

Instructions

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