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

question 201

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:

Forceps

A surgical instrument similar to tongs, used for grabbing, manipulating, or removing objects during surgery.

Dilating/probing

The process of expanding or investigating a body part or cavity with specialized instruments for diagnostic or therapeutic purposes.

Cutting

In a general context, cutting refers to the act of severing or dividing something into parts with a sharp tool. In horticulture, it describes a method of plant propagation.