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

Multiple Choice

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.