Quality-Value, Inc. maintains a gross margin of 75% on all of its merchandise. In September the company had a beginning inventory of $604,900, net purchases of $186,900, and net sales of $487,600. Use the gross profit method to estimate the cost of ending inventory as of September 30.

A. $200,561
B. $418,300
C. $691,800
D. $669,900


Answer: D

Business

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