Question
The following information is available for Silver Company for the three months ended March 31, 2019: Merchandise inventory, January 1, 2019 $ 900,000 Purchases 3,400,000
The following information is available for Silver Company for the three months ended March 31, 2019:
| Merchandise inventory, January 1, 2019 | $ 900,000 |
| Purchases | 3,400,000 |
| Freight-in | 200,000 |
| Sales | 4,800,000 |
The gross margin recorded was 25% of sales. What should be the merchandise inventory at March 31, 2019?
a.$700,000
b.$1,125,000
c.$1,200,000
d.$900,000
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Economics Of Accounting Information In Markets
Authors: Peter Ove Christensen, Gerald Feltham
2nd Edition
1402072295, 9781402072291
