At the Beginning of the Year, Hunt Company Had an Inventory

question 88

Multiple Choice

At the beginning of the year, Hunt Company had an inventory of $750,000. During the year, the company purchased goods costing $2,400,000. If Hunt Company reported ending inventory of $900,000 and sales of $3,750,000, the company's cost of goods sold and gross profit rate must be

• A) $1,500,000 and 66.7%.
• B) $2,250,000 and 40%.
• C) $1,500,000 and 40%.
• D) $2,250,000 and 60%.

---

Definitions:

Diverge

To move or extend in different directions from a common point, often used in reference to plate tectonics or paths.

Subducted Plate

A tectonic plate that is being forced downward into the mantle beneath another plate at a convergent boundary.

Continental Rifting

The process where a continental landmass breaks apart due to tectonic forces, often leading to the formation of new ocean basins.

Continent Intact

This term is unclear but may refer to a continent remaining geologically stable or undivided by significant natural events over time.