Kingbird 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 $ 156,000

Purchases (gross) 576,100

Freight-in 29,300

Sales revenue 998,400

Sales returns 72,100

Purchase discounts 11,900

1) Compute the estimated inventory at May 31, assuming that the gross profit is 35% of net sales.

2) Compute the estimated inventory at May 31, assuming that the gross profit is 35% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)