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1. Utley Co. prepares monthly income statements. Inventory is counted only at year end; thus, month-end inventories must be estimated. The rate of mark-up on cost is 20%. The following information relates to the month of May. Sales during May Inventory, May 1 Purchases during May $90,000 45,000 58,000 Instruction: Calculate the estimated cost of the inventory on May 31. 2. When you undertook the preparation of the financial statements for Telfer Company at January 31, 2020, the following data were available: At Cost At Retail Inventory, February 1, 2019 $70,800 $ 98,500 Markdowns 15.000 Markups 53,000 Purchases 219,500 294,000 Sales revenue 345,000 Purchases returns and allowances 4,300 5,500 Sales returns and allowances 10,000 Instructions Compute the ending inventory at cost as of January 31, 2020, using the retail method which approximates lower of cost or market