Quigley Company's Records Indicate the Following Information for the Year

question 247

Multiple Choice

Quigley Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of ₤720,000 was in the warehouse. Quigley's gross profit on sales has remained constant at 30%. Quigley suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?

• A) ₤120,000
• B) ₤240,000
• C) ₤360,000
• D) ₤840,000