Extra Manufacturing Maintains a Gross Margin of 30% on All

Multiple Choice

Extra Manufacturing maintains a gross margin of 30% on all of its merchandise. In March the company had a beginning inventory of $416,800, net purchases of $201,500, and net sales of $660,200. Use the gross profit method to estimate the cost of ending inventory as of March 31.

A) $420,240
B) $569,940
C) $264,080
D) $156,160