Gross profit method.
Utley 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 May.
InstructionsCalculate the estimated cost of the inventory on May 31.

Question

Gross profit method.
Utley 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 May.  
InstructionsCalculate the estimated cost of the inventory on May 31.

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The Answer of Gross profit method.
Utley 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 May.  
InstructionsCalculate the estimated cost of the inventory on May 31.

Gross Profit Method. Utley Co. Prepares Monthly Income Statements. Inventory Is Counted Only