(a) Miller, Ltd. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The gross profit percentage is 20%. The following account balances are available:

Inventory, March 1 Purchases

Sales during March

$220,000 164,000 350,000

What is estimate of the cost of inventory reported on the statement of financial position as at March 31? (4 marks)

All calculations have to be shown