Answer:
The estimated inventory at May 31 is $352,549
Explanation:
In order to calculate the estimated inventory at May 31 we would have to calculate the following formula:
Estimated closing inventory=(resale of goods- sales in may)*(beginning inventory plus purchases/resale of goods
Estimated closing inventory=($1,020,000-$400,000)*($580,000)/$1,020,000)
Estimated closing inventory =($620,000*$580,000)/$1,020,000
Estimated closing inventory =$352,549
The estimated inventory at May 31 is $352,549
