The Following Information Is Available for the Segura Company for the Three

question 86

Multiple Choice

The following information is available for the Segura Company for the three months ended June 30: $\begin{array}{ll}\text { Inventory, April 1 } & \$ 1,200,000 \\\text { Purchases } & 4,500,000 \\\text { Freight In } & 300,000 \\\text { Sales } & 6,400,000\end{array}$ The gross margin was 25 percent of sales. What is the estimated inventory balance at June 30?

• A) $880,000
• B) $933,000
• C) $1,200,000
• D) $1,500,000