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Please assist with Part 2 and show work Splish Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is
Please assist with Part 2 and show work
Splish 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 Sales revenue Sales returns Purchase discounts $ 159,500 593,300 32,900 974,400 75,900 10.800 Part 1 Your answer is correct. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $ $ 101025 Part 2 * Your answer is incorrect. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to O decimal places, e.g. 6,225.) The estimated inventory at May 31 $ $ 655556
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