On March 31 a Company Needed to Estimate Its Ending

Multiple Choice

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements.The following information is available: Beginning inventory,January 1: $4,000
Net sales: $80,000
Net purchases: $78,000
The company's gross margin ratio is 25%.Using the gross profit method,the cost of goods sold would be:

A) $60,000.
B) $20,000.
C) $58,500.
D) $63,000.
E) $19,500.