Dianna 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 20%.The following information relates to the month of September.

Required:
Calculate the estimated cost of the inventory on September 30.

Question

Dianna 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 20%.The following information relates to the month of September.
  
Required:
Calculate the estimated cost of the inventory on September 30.

Quizplus · Accepted Answer

The Answer of Dianna 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 20%.The following information relates to the month of September.
  
Required:
Calculate the estimated cost of the inventory on September 30.

Dianna CoPrepares Monthly Income Statements