A Company Loses Its Opening Financial Records in a Fire

Multiple Choice

A company loses its opening financial records in a fire.During the following year, it incurred costs of production of $250,000 and sold $300,000 in merchandise.It took an inventory count and found that it had $100,000 in product on hand.What should the company's opening inventory show before the fire?

A) $50,000
B) $100,000
C) $150,000
D) Cannot be determined from the above information.