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

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Definitions:

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Consignee

The person or company that receives goods for sale, storage, or shipment on behalf of another, holding goods without taking ownership.

FOB Destination

A shipping term where the seller is responsible for the delivery of goods to a specific destination, absorbing all costs and risks until the goods are received by the buyer.

Perpetual Inventory System

A method of inventory management where updates to inventory records are made continuously as transactions occur.