Compute estiated inventory at May 31st, that the gross profir is 30% of sales, and 30% at at cost?

Exercises 479 E9-14 (L04) (Gross Profit Method) Mark Price 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 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts 160,000 640,000 30,000 1,000,000 70,000 12,000 Instructions (a) (b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost. E9-15 (L04) (Gross Profit Method) Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on lanuary 1 was $38,000. Purchases since January 1 were $72,000; freight-in, $3,400; purchase returns and allowances