For the Last Several Years Conway Corporation Has Operated with a Gross

Multiple Choice

For the last several years Conway Corporation has operated with a gross profit rate of 40%.On January 1 of the current year,the company had on hand inventory with a cost of $600,000.Purchases of merchandise during January amounted to $150,000,and sales for the month were $360,000.Using the gross profit method,what is the estimated inventory at January 31?

A) $144,000
B) $216,000
C) $360,000
D) $534,000