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

question 5

Multiple Choice

Quigley Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of $600,000 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) $100,000
• B) $200,000
• C) $300,000
• D) $700,000

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Raw Material Costs

The expenses associated with acquiring the unprocessed materials required for the production of goods or services.

Demand Curve

A chart displaying how consumer demand for a product varies based on its price.

Consumer Income

The total amount of income available to an individual or household for spending, saving, and investing after taxes.