What is the answer to this question(C-8-5)?

C 8-5 Gross Profit LO 8.3 Estimate ending inventory using the gross profit method. AICPA Adapted Shelly Corporation is an importer and wholesaler. Its merchandise is purchased from several suppliers and is warehoused by Shelly until sold to consumers. In conducting her audit for the year ended June 30, 2016, the corporation's CPA determined that the system of internal control was good. Accordingly, she observed the physical inventory at an interim date, May 31 2016, instead of at year-end. The CPA obtained the following information from the general ledger Inventory, July 1, 2015 87,500 Physical inventory, May 31, 2016 95,000 Sales for 11 months ended May 31, 2016 840,000 Sales for year ended June 30, 2016 960,000 Purchases for 11 months ended May 31, 675,000 2016 before audit adjustments) Purchases for year ended June 30, 2016 800,000 (before audit adjustments) The CPA's audit disclosed the following information: C 8-5 Gross Profit LO 8.3 Estimate ending inventory using the gross profit method. AICPA Adapted Shelly Corporation is an importer and wholesaler. Its merchandise is purchased from several suppliers and is warehoused by Shelly until sold to consumers. In conducting her audit for the year ended June 30, 2016, the corporation's CPA determined that the system of internal control was good. Accordingly, she observed the physical inventory at an interim date, May 31 2016, instead of at year-end. The CPA obtained the following information from the general ledger Inventory, July 1, 2015 87,500 Physical inventory, May 31, 2016 95,000 Sales for 11 months ended May 31, 2016 840,000 Sales for year ended June 30, 2016 960,000 Purchases for 11 months ended May 31, 675,000 2016 before audit adjustments) Purchases for year ended June 30, 2016 800,000 (before audit adjustments) The CPA's audit disclosed the following information