Calculate the estimated inventory at may

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Question - Whispering Winds Company Limited, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May:

Inventory, May 1 $359,000

Purchases 723,000

Freight-in 51,000

Sales 1,270,000

Sales returns 75,600

Purchase discounts 12,100

Required -

1. Calculate the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

2. Calculate the estimated inventory at May 31, assuming that the markup on cost is 25%.

Reference no: EM133072879

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