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

B) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost?

Cullumber 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 $ 167,300 Purchases (gross) 580,800 Freight-in 32,100 Sales revenue 979,300 Sales returns 73,300 Purchase discounts 11,300