At the Beginning of the Year, Hunt Company Had an Inventory

Multiple Choice

At the beginning of the year, Hunt Company had an inventory of $750,000. During the year, the company purchased goods costing $2,400,000. If Hunt Company reported ending inventory of $900,000 and sales of $3,750,000, the company's cost of goods sold and gross profit rate must be

A) $1,500,000 and 66.7%.
B) $2,250,000 and 40%.
C) $1,500,000 and 40%.
D) $2,250,000 and 60%.