Multiple Choice
Stubbs Company uses the perpetual inventory method and the weighted-average cost flow method.On January 1,Year 2,Stubbs purchased 400 units of inventory that cost $8.00 each.On January 10,Year 2,the company purchased an additional 600 units of inventory that cost $9.00 each.If the company sells 700 units of inventory for $16.00 each,what is the amount of gross margin reported on the income statement?
A) $5,180
B) $5,250
C) $5,000
D) $6,020
Correct Answer:
Verified
Correct Answer:
Verified
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