What is the estimated cost of inventory

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Question - You observed the physical inventory of your client, Everdeen Company at the close of business on July 31, 2019.

The inventory totaled P205,000. You were verifying the accuracy of the inventory records at June 30, 2019, therefore you must estimate an inventory amount on that date. You find that during the period July 1 through July 31, 2019, sales were P705,000; sales returns, P18,000; gross purchases, P650,000; purchase returns, P12,000, freight-in P6,000. What is the estimated cost of inventory assuming that goods are sold at 20% above cost?

Reference no: EM132701099

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