Do not Copy from Bartleby. otherwise I will give you dislike. Thnkyou (Gross Profit Method) Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes....

Do not Copy from Bartleby. otherwise I will give you dislike. Thnkyou

(Gross Profit Method) 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 Purchases (gross) Freight-in 160,000 640,000 30,000 Sales revenue 1,000,000 Sales returns Purchase discounts 70,000 12,000 Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.