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%.

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Definitions:

Variance

A statistical measure of the dispersion or spread of data points in a data set, indicating how far each data point in the set is from the mean.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the count of numbers.

Aged

Refers to something or someone of advanced age; in statistics, it might relate to data or populations that are considered old or outdated.

Standard Deviation

A measure of the dispersion or variability within a dataset, indicating how much individual data points differ from the mean.