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:

Free Market System

An economic system based on supply and demand with minimal government intervention, where prices for goods and services are determined freely by the open market.

Cluster

A group of similar things or people positioned or occurring closely together, often used to refer to a statistical analysis method that identifies groups of similar data points.

Wants and Needs

Desires (wants) are wishes or aspirations not necessary for survival, whereas needs are essential for basic human survival.

Unobtrusive Measure

A method of gathering data without affecting or alerting the subjects, ensuring behaviors remain natural and unperturbed.