Multiple Choice
Stubbs Company uses the perpetual inventory method.On January 1,2016,Stubbs purchased 400 units of inventory that cost $8.00 each.On January 10,2016,the company purchased an additional 600 units of inventory that cost $9.00 each.If Stubbs uses a weighted average cost flow method and sells 700 units of inventory for $16.00 each,the amount of gross margin reported on the income statement will be:
A) $5,180.
B) $5,250.
C) $5,000.
D) $6,020.
Correct Answer:
Verified
Correct Answer:
Verified
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