Indigo 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		$ 165,300
Purchases (gross)		619,800
Freight-in		30,100
Sales revenue		940,100
Sales returns		68,700
Purchase discounts		11,600

(a)

Compute the estimated inventory at May 31, assuming that the gross profit is 40% of net sales.

The estimated inventory at May 31

$