Ending Inventory

Plastic Limited uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May:

Inventory, May 1

$

367,000

Purchases

$714,000

Freightin

$51,000

Sales

$1,270,000

Sales returns

$75,500

Purchase discounts

$11,600

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

Estimated inventory, May 31

$_____________

Calculate the estimated inventory at May 31, assuming that the markup on cost is 25%.

Estimated inventory, May 31 $_____________