試題詳解

4. On December 31, 2010 Penfold Company's inventory burned. Sales and purchases for the year had been $1,400,000 and $980,000, respectively. The beginning inventory was $170,000; in the past Penfold，s gross profit has averaged 40% of selling price. What is the estimated cost of inventory burned?
(A) $840,000
(B) $590,000
(C) $310,000
(D) $140,000