ABHAY Co.prepares monthly income statements.Inventory is counted only at year end;thus,month-end inventories must be estimated.All sales are made on account.The rate of mark-up on cost is 25%.The following information relates to the month of June.

Instructions
Calculate the estimated cost of the inventory on June 30.

Question

ABHAY Co.prepares monthly income statements.Inventory is counted only at year end;thus,month-end inventories must be estimated.All sales are made on account.The rate of mark-up on cost is 25%.The following information relates to the month of June.
  
Instructions
Calculate the estimated cost of the inventory on June 30.

Quizplus · Accepted Answer

The Answer of ABHAY Co.prepares monthly income statements.Inventory is counted only at year end;thus,month-end inventories must be estimated.All sales are made on account.The rate of mark-up on cost is 25%.The following information relates to the month of June.
  
Instructions
Calculate the estimated cost of the inventory on June 30.

ABHAY CoPrepares Monthly Income Statements