Wade Company Prepares Monthly Financial Statements and Uses the Gross

Multiple Choice

Wade Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $60,000; the beginning inventory on June 1 was $18,000; and the cost of goods purchased during June amounted to $27,000. The estimated cost of Wade Company's inventory on June 30 is

A) $9,000.
B) $36,000.
C) $15,000.
D) $24,000.