Compute the estimated cost of the june inventory

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Reference no: EM132694156

Aloha 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 2020:

Accounts receivable, June 1, 2020 100,000

Accounts receivable, June 30, 2020 150,000

Collection of accounts receivable during June 2020 250,000

Inventory, June 1, 2020 180,000

Purchases of inventory during June 2020 160,000

Required:

Problem 1: Compute the estimated cost of the June 30, 2020 inventory.

Reference no: EM132694156

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