On January 1, 2020, the Merchandise Inventory of Shoesmith Corp

Multiple Choice

On January 1, 2020, the merchandise inventory of Shoesmith Corp. was $600,000. During 2020, Shoesmith purchased $1,150,000 of merchandise and recorded sales of $1,350,000. The gross profit rate on these sales was 35%. What is the estimated dollar value of the inventory at December 31?

A) $877,500
B) $872,500
C) $562,500
D) $472,500