Buffalo Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information fo rthe month of May. Inventory May $1171,200$ Purchases $($groiss$)596,600$ Freight in $28,400$ Sales Revenue $957,000$ Sales Retruns $64,700$ Purchase disocyunts $12,300$ Compute the estimated inventory at may $31$ assuming the gross profit is $25\%$ of sales compute the estimated inventory at may $31$ assuming that the gross profit is $25\%$ of cost