During February, Horizon Company had sales of $480,000 and a cost of goods available for sale of $750,000. The company consistently maintains a gross profit rate of 40%. Using the gross profit method, the estimated inventory at February 28 amounts to: A. $192,000 B. $288,000 C. $462,000 D. $558,000

During February, Horizon Company had sales of $480,000 and a cost of goods available for sale of $750,000. The company consistently maintains a gross profit rate of 40%. Using the gross profit method, the estimated inventory at February 28 amounts to: A. $192,000 B. $288,000 C. $462,000 D. $558,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 2RE: On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the...

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I don't need ai answer general accounting question

During February, Horizon Company had sales of $480,000 and a cost of goods available
for sale of $750,000. The company consistently maintains a gross profit rate of 40%. Using
the gross profit method, the estimated inventory at February 28 amounts to:
A. $192,000
B. $288,000
C. $462,000
D. $558,000

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