Gross profit method Kiowa Ltd.prepares monthly financial 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 May: Instructions Calculate the estimated cost of the inventory on May 31.

Question

Gross profit method Kiowa Ltd.prepares monthly financial 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 May:  Instructions Calculate the estimated cost of the inventory on May 31.

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The Answer of Gross profit method Kiowa Ltd.prepares monthly financial 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 May:  Instructions Calculate the estimated cost of the inventory on May 31.

Gross Profit Method Kiowa Ltd