Gabriel Company prepares monthly income statements

Accounting Dec 02, 2020

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?

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