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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.
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.
Accounts receivable, May 1 $21,000 Accounts receivable, May 31 15,000 Collections of accounts during May 90,000 Inventory, May 1 45,000 Purchases during May 58,000 Instructions Calculate the estimated cost of the inventory on May.31
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