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: Inventory, March 1 $220,000 Purchases $172,000 Purchase returns $8,000 Sales during March $300,000 The estimate of the cost of inventory at March 31 would be

which is the answer is it as follows:

$84,000.

$144,000.

$159,000.

$112,000.