On January 1, 2014, the Merchandise Inventory of Morton Corp

question 337

Multiple Choice

On January 1, 2014, the merchandise inventory of Morton Corp.was $600,000.During 2014, Morton purchased $1,150,000 of merchandise and recorded sales of $1,350,000.The gross profit rate on these sales was 35%.What is the estimated dollar value of the inventory at December 31?

• A)$877,500
• B)$872,500
• C)$562,500
• D)$472,500

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Definitions:

Bandages

Strips of cloth or other material used to wrap or cover wounds, providing protection and support.

Receiving Report

A document that records the details of materials or goods received by a company, ensuring the quantities and descriptions match the order.

Materials Ordered

The process of requesting and purchasing raw materials or supplies required for production or operations.

Materials Requisitions

Documents that request the release of materials to be used in the production process or for other operational needs.