Lorna Company Has the Following Data Available The Estimated Cost of the Ending Inventory Using the Gross

question 131

Multiple Choice

Lorna Company has the following data available: $$\begin{array} { | l | r | } \hline \text { Beginning inventory } & \$ 170,000 \\\hline \text { Net purchases } & \$ 500,000 \\\hline \text { Net sales } & \$ 900,000 \\\hline \text { Gross profit percentage } & 60 \% \\\hline\end{array}$$
The estimated cost of the ending inventory using the gross profit method is ________.

• A) $310,000
• B) $540,000
• C) $360,000
• D) $670,000

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