Miller, Inc.estimates the cost of its physical inventory at March 31 for use in an interim financial statement.The rate of markup on cost is 25%.The following account balances are available: $$\begin{array} { l r }
\text { Inventory, March 1 } & \$ 220,000 \
\text { Purchases } & 172,000 \
\text { Purchase returns } & 8,000 \
\text { Sales during March } & 300,000
\end{array}$$ The estimate of the cost of inventory at March 31 would be
A)$84,000.
B)$144,000.
C)$159,000.
D)$112,000.

Question

Miller, Inc.estimates the cost of its physical inventory at March 31 for use in an interim financial statement.The rate of markup on cost is 25%.The following account balances are available: $$\begin{array} { l r } 
\text { Inventory, March 1 } & \$ 220,000 \
\text { Purchases } & 172,000 \
\text { Purchase returns } & 8,000 \
\text { Sales during March } & 300,000
\end{array}$$ The estimate of the cost of inventory at March 31 would be
A)$84,000.
B)$144,000.
C)$159,000.
D)$112,000.

Quizplus · Accepted Answer

The Answer of Miller, Inc.estimates the cost of its physical inventory at March 31 for use in an interim financial statement.The rate of markup on cost is 25%.The following account balances are available: $$\begin{array} { l r } 
\text { Inventory, March 1 } & \$ 220,000 \
\text { Purchases } & 172,000 \
\text { Purchase returns } & 8,000 \
\text { Sales during March } & 300,000
\end{array}$$ The estimate of the cost of inventory at March 31 would be
A)$84,000.
B)$144,000.
C)$159,000.
D)$112,000.

Miller, Inc The Estimate of the Cost of Inventory at March 31