Homework answers / question archive / Gabriel Company prepares monthly income statements

Gabriel Company prepares monthly income statements

Accounting

Share With

Gabriel Company prepares monthly income statements. A physical inventory is taken only at year-end; hence, month-end inventories must be estimated. All sales are made on account. The rate of mark up on cost is 50%. The following information relates to the month of June:

Accounts receivable, June 1                            P102,000

Accounts receivable, June 30                          153,000

Collection of AR during June                           255,000

Inventory, June 1                                               183,600

Purchases of inventory during June          163,200

How much is the estimated cost of June 30, inventory?