Monty 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		$ 175,600
Purchases (gross)		617,400
Freight-in		31,700
Sales revenue		973,200
Sales returns		68,100
Purchase discounts		12,900

(a)

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

The estimated inventory at May 31