I got A right but I got B wrong. Please show your work so I can see where I went wrong!
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 | $ 175,500 | |
| Purchases (gross) | 648,200 | |
| Freight in | 31,600 | |
| Sales revenue | 1,050,800 | |
| Sales returns | 75,600 | |
| Purchase discounts | 12,290 |
(a) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales.
| The estimated inventory at May 31 | $ |
(b) Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost. (Round percentage of sales to 2 decimal places, e.g 78.74% and final answer to 0 decimal places, e.g. 6,225.)
The estimated inventory at May 31 $ ___________________