The Following Information Is Available for the Segura Company for the Three

Multiple Choice

The following information is available for the Segura Company for the three months ended June 30: $\begin{array}{ll}\text { Inventory, April 1 } & \$ 1,200,000 \\\text { Purchases } & 4,500,000 \\\text { Freight In } & 300,000 \\\text { Sales } & 6,400,000\end{array}$ The gross margin was 25 percent of sales. What is the estimated inventory balance at June 30?

A) $880,000
B) $933,000
C) $1,200,000
D) $1,500,000