Culver 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 $ 174,600 Purchases (gross) 607,000 Freight-in 29,300 Sales revenue 983,300 Sales returns 67,700 Purchase discounts 12,700 Compute the estimated inventory at May 31, assuming that the gross profit is 20% of net sales. Compute the estimated inventory at May 31, assuming that the gross profit is 20% of cost.