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

question 62

Multiple Choice

At the beginning of the year, Hinz Company had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Hinz Company reported ending inventory of $600,000 and sales of $2,000,000, the company's cost of goods sold and gross profit rate must be

• A) $1,000,000 and 50%.
• B) $1,400,000 and 30%.
• C) $1,000,000 and 30%.
• D) $1,400,000 and 70%.