Crane 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 $ 171,200

Purchases (gross) 596,600

Freight-in 28,400

Sales revenue 957,000

Sales returns 64,700

Purchase discounts 12,300

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31