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

question 108

Multiple Choice

H.Hunter Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse.H.Hunter's gross profit on sales has remained constant at 30%. H.Hunter 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)$60,000
• B)$100,000
• C)$150,000
• D)$1,340,000

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Definitions:

Floor Space

The total area available for use within a building, often measured in square feet or square meters, important for planning and utilization.

Maintenance Expenses

Costs incurred in the upkeep of property or equipment to ensure its continued functionality and efficiency.

Square Footage

The measurement of area expressed in square feet, commonly used to determine the size of a building or room.

Direct Expenses

Costs that are directly traceable to a specific cost object, such as a product, department, or project.