Mark Price 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	$179,800
Purchases (gross)	659,800
Freight-in	32,000
Sales revenue	1,039,100
Sales returns	80,900
Purchase discounts	12,210

(a)Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales.

The estimated inventory at May 31

$

(b)Compute the estimated inventory at May 31, assuming that the gross profit is 30% 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.)

The estimated inventory at May 31