Hornacek 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 $ 120,000 770,000 20,000 Sales revenue 1,200,000 Sales returns 100,000 Purchase discounts 50,000 Instructions Compute the estimated inventory at May 31, assuming that the gross profit is 33% of sales.